Assuming correct accounting treatment, the shareholders fund should not be used as an indicator of ability to repay the bond. That's because the bond liability should have been amortised from year 5 to maturity.

Default should therefore be pegged on the companies cash flow position.

But as I said above, assuming they followed correct accounting treatment, did they?

You have killed me

At worst keep the money in the bank

Mainstream media doing what they do best. Rope in poor wanjiku. As Redd Foxx always said " don't do it don't do it".wait for it at 10 bob after they have a clear path and history. For now is a black hole that Steve Hawkins keeps talking about.

The advise on offer here is quite telling...why would one sell transcentury to buy Fahari? If one was to sell transcentury there are far much better buying options.

Gazeti ya kufunga nyama. The Journalist and the investment analyst need to up their game.

Here is another article which by virtue of breaking down the numbers paints a different picture about Fahari. http://www.businessdaily...8/-/81olwj/-/index.html

The logic of the article also defeated me. Is the ship sinking because of failing to plug the 8bn hole in its side or because the passengers 'lack confidence' that it will float?

Even worse, the previous captain (Gachao Kiuna) was last seen swimming away for dear life. How can shareholders (with less information at their disposal) be expected to be more confident than management?

I hope Tran can pay its debts on time, but as someone once said: hope is not an investment strategy.

Here is another hopeful article: http://www.businessdaily...0/-/8c78yz/-/index.html

Message here is: The future is bright so do not worry of the current gloom!