Forum Archive Index - September 2000

[Derek <dkw@paradise.net.nz>]

Hi,
Are there any economist-types out there who can help me understand this
statement by Southport - 

"As at 31 August 2000, South Port carries no debt on its balance sheet. In
the period under review, term liabilities declined to $5m ($8.4m) and have
nowbeen repaid in full. Mr O'Connor says that in coming months South Port
will be communicating to shareholders a recommendation to establish a more
commercial mix of debt and shareholders' equity (currently standing at
$30.9m after allowing for dividend payments of $1.8m during the period).
This is likely to involve apro-rata offer to buy back shares using funding
from bank debt." 

I don't understand this, does this mean that they aspire to be another FFS? 
Being in a debt-free situation seems like a plus to me.

Derek





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