BLV 0.00% 1.6¢ blossomvale holdings ltd

Yes, but have a little more debt than NMS:As at end first...

  1. 689 Posts.
    Yes, but have a little more debt than NMS:
    As at end first quarter (31/3/10)
    Liquidity Outlook (for Trico Marine).

    At the end of the first quarter, the Company had $32 million in cash and $737 million in total debt. As previously disclosed, the Company's forecasted cash and available credit capacity are not expected to be sufficient to meet its commitments as they come due over the next twelve months and the Company does not expect that it will be able to remain in compliance with its existing debt covenants.

    My comments : Trico also lost $78 mill for the quarter with an interest expense of $22mill. Previous quarter they lost $160 mill.
    NMS are in a way better position than Trico and HOPEFULLY on a different path.
    Debt wise NMS is in an ok position its just that they completely stuffed up the short term/long term debt mix. Even junior accountants would get that right - its so darn basic. Greed/growth prospects can blind anyone.
    Also NMS have been in net profit the last 2 years (albiet slim for 30/6/10).
    Net equity for Trico was wittled down to $28 mill, NMS is about $221 mill. Of course this assumes the busineesses acquired have retained there value and there will be no goodwill writedowns.
    The NMS problems have been:
    1. Inability to coordinate and control the various entities that make up the Group. This has been addressed by:
    - one NMS - rebranding
    - Regional managers appointed
    2. Different entity financial and reporting systems have made decision making dificult. New financial systems have been introduced to address this.
    3. Acquiring long term assets with short term funding. This is being addressed with lenders but has put the Company at the mercy of these lenders. How this all pans out??? No doubt a solution will be found. How good will it be for share holders??
    Whatever, NMS must never get itself into this situation again. Even if it means no more acquisitions for a number of years. Better to return to higher NPAT's and eventually acquire from Retained earnings.
 
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