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Old 19th May 2020, 13:36
  #1231 (permalink)  
MickG0105
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 230
Originally Posted by galdian View Post
As I've said before love your work, think it's as good as any on the forums.
Thank you. That's back of the fag packet stuff but I think that the quanta are about right.

One thing I missed above was Temasek's reported tie up with BGH. That might make the funding easier to manage.

Originally Posted by galdian View Post
Question I'd have - and maybe already asked in a similar way - as the whole show seems to be deteriorating at a great rate of knots how long before the administrator (deloittes) places the whole thing into liquidation to ensure the administrator (deloittes) do not incur costs against themselves...as apparently in administration they're meant to be controlling the finances therefore are responsible for the same??
What - if anything - would be the trigger??

Cheers
Good question. Deloitte have been studiously making applications to the Federal Court to minimise their liabilities. Even so, there must be some concerns amongst their Restructuring Services partners that they are far more exposed on this administration than pretty much anything else they've taken on recently.

I think that Deloitte would have some well articulated risk management guidance and thresholds that would be relevant in a circumstance like this.

Perhaps the thing that would be front of mind for Deloitte is their assessment of just how doable a sale is. They've got to come up with a deed of company arrangement that is amenable to a buyer. At the end of the day the sale will only occur if they can get the debt to a position that a buyer is happy with. That means corralling the creditors. They should already have a sense of the creditors' opening positions on what they'll accept. Having just received non-binding offers they'll have a view as to prospective buyers' appetites for debt. There'll be a gap between the two positions and Deloitte should have a professional view as to whether that gap can be closed such that a deal is possible. They'll have an evolving view as to whether they're in the Go Zone for a deal. If they ever get too far out of that zone they'll have to call time.

The fact that Deloitte are already rattling their cup and we're only just into the short-list phase of the sale process does not augur well. The fact that the bidders know that Deloitte is rattling the cup does not augur well. Same same with Brookfield walking early.

Equally worrying is the way this thing is playing out as a public spectacle. Generally speaking the most successful commercial deals are the ones that you read about for the first time after they've concluded. Clearly Deloitte can't run this whole thing under the radar given that Scurrah ran the lead up to the administration in full view but Deloitte have got to try to get the machinations out of the papers for at least a couple of days at a time.
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