Originally Posted by
MickG0105
Yes, and beyond the Pollyanna spin, the chronology is instructive.
- 13 March. 'The Group currently has a cash position in excess of $1 billion' (ASX announcement)
- 18 March. 'We are well positioned to weather this storm.' (Paul Scurrah, CEO)
- 17 April. 'We are fighting to survive on a day to day basis.' (Stuart Aggs, COO)
- 21 April. 'Our board made a very courageous decision last night to put the company into voluntary administration ...' (Paul Scurrah)
Elapsed time: 39 days.
If the reports that they went into administration with only around $150 million ($30 million in free cash, $120 million in restricted cash) left in the kitty are true, that's a cash burn of around $22 million a day. That is truly incandescent for a business that had stood 80 percent of its workforce down for at least half of that elapsed period; for 10 of the 39 days they were only operating two flights a day, Sydney-Melbourne return.
Based on their FY20-H1 interim report, when the business was running at full tilt, it was burning around $23 million a day so something doesn't add up there.
What triggered PS to buy $100k of VAH shares 2 weeks after VAH reported S&P’s COVID19 downgrade and 5 weeks before VA was put into administration?
What DD did PS do before he accepted his position at the ‘doomed’ VA and what triggered him to by $100k worth of VAH shares during COVID19 and just weeks before ‘voluntary’ administration?