A very rough road ahead
PPC results were ugly, with current assets now just over R2.7bn while current liabilities are just over R6bn. This technically makes PPC insolvent and the auditors have “expressed a disclaimer” concerning the company as a going concern and its debt liabilities. Post the March year-end, PPC has seen its debt downgraded four notches, which has made things very tough for the company. I have already suggested a sell here and while I think the company will be able to survive, it is not going to be easy and existing shareholders are going to see massive dilution when the rights issue happens.