Forum Archive Index - April 2002

["Viewpoint ." <viewpoint_@hotmail.com>]

snoopy

Yes the numbers were from Dec 01 reports.

Borrowings are borrowings - be it short or long term, it all needs to paid 
back sometime. In fairness should take into account the cash shown of $164 
million.

I gather they have recently converted some of their short term debt into 
long term debt (taking advantage of lower interest rates)

Even so high debt to capital ratios are a worry. Usually lenders put some 
limits on the level of debt relative to equity. And if $1 billion did get 
written off I am sure lenders wouldn't wouldn't want to see $6 billion of 
debt supported by $1 billion of equity.

The writedown wont have any cash impact this time around - as you and 
donkeyboy have previously pointed out the cash has already gone (been 
wasted?).

Did you see last week that TEN in Australia wrote down a recent acquisition 
by $180 million - and canned dividends for a year or so.









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