BLV 0.00% 1.6¢ blossomvale holdings ltd

NMS is not that highly geared so i do not see a problem...

  1. 689 Posts.
    NMS is not that highly geared so i do not see a problem servicing debts - unless the US revenues stay down for a protracted period. They were down 70%. Aus is up 30%.
    The delay in financing is a worry. Probably means that there will be some sort of cap raising.
    Also the earns outs of $14 mil (10cash and 4 shares) will probably have to be converted to a long term loan - negs must in in process. The people this money is owed to will only receive it if NMS is a going concern. So they have incentive to get their debt off the current liabliities part of the balance shhet.
    If they do that then 'presto' all of a sudden NMS is liquid, ie it can pay its debts as they fall due. Current assets > Current liabs. Although maybe the NAB want a clean slate, ie total current liabs free.
    The auditors qualification is damaging to the business. Who would give a multi year contract to a business with going concern qualifications.
    If refinancing was easy then it would have been done months ago.
    I'm tipping a fairly big Share issue. The NAB were throwing money at NMS not long ago on a short term basis and now haggling causing damage to the business.
    I don't think we will see asset sales as they may well be giveaway unless they get a massive offer for NEPSYS that will wipe all debts.
 
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