Accrol Group Holdings - Re: ACRL Stream Log - Another Jacko - It doesn't...

Another Jacko - It doesn't look great I grant you. They are clearly hanging on by a thread. BUT there is a scenario where they get a covenant waiver from the banks (not impossible as banks ultimately don't want any business to go bust and have to take a full write down), pulp prices stabilise, FX hedges roll off, and they agree sustainable prices with their customers. Perhaps far fetched but not impossible. Today's RNS just underlined for me that the decisions taken by the original mgmt team were obviously of the highest orders of incompetence. When coupled with spiking pulp prices the result was toxic. But new management team is clearly doing all it can in difficult circumstances and will go down fighting. Also if some of the aforementioned indicators start moving in their favour and they need a cash bridge there is always the scope for them to try a rescue rights issue before they throw in the towel. As always time will tell. But they are not completely done yet...