Dream on...

Just when you thought the croupier had gone home, Morningstar analyst Peter Warnes was reported in yesterday’s press as saying ... “This is the last throw of the dice.”

He was referring to Gunns’ plan to raise another $400 million from shareholders. Business Spectator said “the funds would be used to help the company cope with the planned sale of non-core assets”. What does that mean? Are the non-core assets being sold? Or will Gunns be required to pay ‘purchasers’ to take the assets off its hands?

The sale of assets has proved to be tortuously difficult for Gunns.

The sale of Green Triangle land has been awaiting settlement for ages. The latest announcement re the Green Triangle land was only about shuffling the asset into another entity, not reaping any cash from a third party.

State of the state

 

Tasmania — A Cash Flow Analysis Based on a Working Paper commissioned by Ruth Forrest MLC and a presentation to the Economics Society, Hobart, 22nd March 2012.

The aim of this paper is an assessment of Tasmania’s past, current and forecast financial position, over a 9 year period, from 2006/07 to 2014/15. In particular this will include a close look at the General Government Sector’s (GGS) Cash Flow Statements to

• Reclassify inflows and outflows into more appropriate categories of ‘operating’, ‘investing’ and ‘financing’ as will allow an easier interpretation of Government financial statements.

• Examine the components of each category of inflow and outflow.

• Examine the source of inflows as Federal vs State sourced revenue.

• Provide a basis for understanding and measuring sustainability.

Nobody's buying

Nobody’s buying.

At least not Gunns’ assets.

A few are still buying CEO Greg L’Estrange’s story as described in the latest half yearly report and presentation of possibly the worst garage sale ever.

A year ago Gunns owed secured creditors $631 million. Now it’s $587 million.