Hi Minimoke,
Was the market valuation as at 30 Jun 2009 more or less than the historical cost they used in the financials as at that date?
Alan.
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Hi Minimoke,
I don't understand. Aren't you saying that they overstated the figures in the balance sheet as at 30 Jun 2009 and thus 'misled' investors?
If it gave investors and S&P 'greater confidence' then it must have been higher than it should have been, so you are saying that they overstated the value as at 30 Jun 2009?
Thanks,
Alan.
I'm saying that thats perhaps a question best answered by the independant valuation.
I'll also say investors should have confidence in the accounts presented - especially when they took such a long time to finalise; especially when there are applicable accounting standards and when you are run by professionals and you use professionals they ought to know these standards and use them correctly; and especially in turbulent financial times.
and remember that one (main) reason for the delay in the accounts was that they were subject to 'peer review' ...... that sort of suggests that other experts looked at the accounts as well .... oh goodness gracious
What's an even bigger concern that there is to be further writedowns on impaired assets ... so obviously rose tinted glasses were on when they did the last assessment
NBR reported Maier is seeking funding 'with a degree of urgency' and with lack of clarity whether this funding is coming directly inot SCF or whether Southbury is doing the capital raising only causes more uncertainity
How much new capital does SCF need? that depends on the additional writeoffs .... but talk of $300m or more is going around
At least Maier getting things moving ... the big broom sweeping the floor clean might be painful though
Hi Winner69,
With respect to your point regarding whether the capital comes in directly to SCF or via Southbury which then subscribes for additional shares:
What would be the difference from the perspective of other investors in SCF (prefs, bonds, depositors etc)?
Does one option give greater security than the other? Which one would be more positive to pricing on the listed investments do you think?
Thanks,
Alan.