Case Study.

Ten Network Holdings Limited (ASX: TEN) shares were suspended for trading on the ASX on 9th June 2017. Its shares closed at $0.16 on the day, down more than 84% from a year ago, after it fell into administration with key billionaire investors, James Packer, Lachlan Murdoch and Bruce Gordon failing to offer their support for a new debt facility [...]

At the end of May 2017, sandalwood farming company Quintis Limited (ASX: QIN) was downgraded by Standard & Poor’s into the rarely seen ‘C’ section of the credit rating spectrum indicating immediate danger of credit default. Quintis (which formerly traded as Tree Management Services) is the world’s biggest owner and manager of Indian sandalwood which is a timber used in [...]

Over the past few years, Noble Group (SGD: NOBL), once Asia’s largest commodity trader, has experienced a significant decline in profitability following a downturn in the commodities market coinciding with accusations of overstating its accounts. After reporting an unexpected quarterly loss, Noble’s woes deepened when it announced that it may not be profitable until 2019, sparking concerns it would not be [...]

Over the past decade, Netflix has risen to be a household name through its leading position in the of ~US$30 billion global video streaming market. The company is a constituent of the S&P500 index (the largest 500 stocks in the US) and its market capitalisation has grown significantly since 2012 as its international footprint has expanded to over 190 countries. [...]

Amidst a global downturn in the resources sector, drilling company Boart Longyear (ASX: BLY) has suffered a challenging trading environment resulting in weak liquidity and profitability. In a bid to stay afloat and meet existing debt obligations, the company announced its intention to restructure its debt and capital last year. Earlier this month, BLY indicated that the recapitalisation plan had [...]

Amidst decade-low uranium prices and over-supply of yellowcake (impure uranium oxide obtained during processing of uranium ore) Paladin Energy (ASX: PDN) announced an ambitious capital restructure plan earlier this year. The capital restructure proposed the exchange of its existing 2017 convertible bonds (US$212 million) and 2020 convertible bonds (US$150 million) into US$115 million of new secured bonds due 2022, US$102 million [...]

In early 2015, legal firm Slater and Gordon (ASX: SGH) acquired the professional services division of the controversial UK group Quindell Plc for $1.2 billion. The debt-funded acquisition, which management hoped to be transformational, has since resulted in large losses and been completely written down, weighing significantly on the firm’s earnings and balance sheet. The weak performance of the group continued [...]

Along with most uranium miners, Paladin Energy (ASX: PDN) has faced increased pressure from decade-low uranium prices and over-supply of yellowcake (impure uranium oxide obtained during processing of uranium ore). With soft top-line growth and failure to sell a 24% stake of its flagship Langer Heinrich mine putting downwards pressure on its liquidity, the company has proposed a balance sheet [...]

Over the past few years, Emeco Holdings Limited (ASX: EHL) has been in financial distress. Post Australia’s mining boom (~2012), the mining equipment solutions provider was left with a large debt pile on its balance sheet and as a result, experienced a credit rating downgrades trifecta at the end of 2015. Subdued commodity prices persisted into 2016 and Emeco’s client [...]