QUOTE(taxpayer @ Nov 4 2011, 01:00 AM)
Bankers are lining up to finance them? you are simply an ignorant fool who doesnt know anything about corporate finance 101. A loan for the purchase of the land 1.2 billion will simply raise their gearing close to 10. Very few profitable listed companies in Malaysia have gearings above 3 anyway and never heard of any profitable company with gearing above 5 we are now in a crowded property market and global economic outlook. Banks are more likely to do the exact opposite , risk aversion and avoid companies with gearing above 1. 11 m in cash is nothing to shout about for a mainboard comapny. It is dangerously low. Dont forget theay they drew down 60 mil of loans alone last quarter and still has such a pathetic level of cash. They are doing exactly what Greece is doing, using fresh borrwoings to pay back existing borrowing and this is nothing but an impressive pyramid scheme. They have to pay back almost the same amount next quarter. SP Setia and Mah Sing has cash in the hundereds of millions at least.
Another simple observation. It has been more than three months since they won the bid but yet no agreement has been signed yet. SP Setia and Mah Sing could have easily paid the 120 mil downpayment with cash and sign the agreement starightaway but this company dont even 10% of that in cash
For a person who knows alot about CF you should also know contracts are not given if the company if they/Ivory did not have means/plans on how to finance this project. For a person who knows alot about CF you should also know that an SPV vehicle can be set up for this particular project finance to raise cash by ring fencing future proceeds of this development. For a person who knows alot you probably should have known that most of the trade secrets are not told in then open and most information pertaining to this is not fully available yet. So don't shoot things down so soon. Be optimistic. To much pessimism in the market at the moment. By the way, I doubt the payment is due all in one go plus is part of government tender so payments will be made in stages/progress. Plus 35 acres is to be reclaimed so as far as my limited knowledge goes, payment of this usually will be in terms of part of the reclaimed land (such as Benalec which takes payment in terms of land reclaimed)
I don't know about 10% payment etc upfront. Anyways have you looked into their loan docs to see that they need to pay 10% etc for the downpayment? Where is it stated? Secondly, yes agreed MSGB and SPSB would have easily paid the amount (if needed) but where is it stated state government seeking RM120mm down payment? If you were observant you would realise that property developers are location centric thats why you don't see MSGB and SPSB doing much/any projects in penang or other states. Their strong hold is KL/S'gor as they know what the market is over here and they are undoubtedly the champions here. Penang on the other hand is a strong hold for E&O (Sime Darby). Why did'nt E&O win is the BIG QUESTION?
Don't sound like there are only 2 property players in the country brother.
Btw just sharing my thoughts and opinion. I know you(taxpayer) sit and talk to all big boys but that does'nt mean you discount other people point of view.
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CF guy (taxpayer), your big friends never tell you ah that Ivory suspended? Looks like you may find out solution for your financing issue that Ivory can never get tomorrow....
This post has been edited by param124: Nov 10 2011, 11:51 PM 
Oct 24 2011, 08:13 PM
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