The big burn
Here’s a wonderful story from the New Zealand Herald explaining the saga of a printing company and it’s optimistic management.
Salient events:
Used to be called Pacific Print based in NZ, but now called Geon Group based in Australia.
In 2005 half of it was sold for about $155 million dollars to Gresham Private Equity, then Gresham bought up the whole of it. They don’t say how much more for.
Since then it pursued “Aggressive growth, particularly in Australia”.
At the end of June 2010 the company had negative equity of $216 million dollars.
Bankers now control the company after accumulated losses of $271 million dollars.
The company was “in danger of collapse” until it’s bank, BOS International, bailed it out last month by reducing it’s debt from $244 million dollars to $80 million dollars and suspended the interest payments. So it the light of this stupendously large disaster where everybody involved lost millions upon millions of dollars what did the group management have to say?
“The company has welcomed the deal, and claims it is now ready for it’s next significant growth stage.”
Hm. Can’t wait.
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