Corporate turnaround, Restructuring & Insolvency

Managing adverse announcements

If not well managed, an adverse announcement such as a profit downgrade or debt covenant breach can unnecessarily wipe out significant shareholder value. It isn’t just investors who are impacted. Bankers, suppliers and customers can get nervous very quickly if the message isn’t managed properly.

Establishing whether an issue should be disclosed

Whether an issue should be disclosed to the market will mainly be determined by interpreting ASX Listing Rule 3.1:

“Once an entity becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities, the entity must immediately tell ASX that information”.

Your decision should consider:

  • How the issue will look in hindsight. Assume a regulator query or ...

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