Q: Hi 5i
Is there an existential threat to the company based on the latest news? The market appears to be in a bad mood... Nearly 50% down from the looks of it...
Now off to find the news.....
Is there an existential threat to the company based on the latest news? The market appears to be in a bad mood... Nearly 50% down from the looks of it...
Now off to find the news.....
5i Research Answer:
It was not a great press release, certainly. We have some detail in the Q&A. It appears to be focused on a single busines acquired in 2021 (Lendcare) and their auto/powersport loans so while not great, it looks like GSY will be able to get through it.
Management noted that they do not foresee any liquidity issues here and appear to be moving to solve the problem between engaging with their creditors, cancelling the dividend as well as share repurchases.