Svetlana wrote:I had coffee with Liasides recently; who mentioned corruption, Microphone? Do you know something we do not? There are many reasons that a company goes bancrupt, cashflow problems etc, some of which you cannot always lay at the door of the MD.
My understanding is that all builds will be completed and all customers on plots where no work has started, will get their money back; I hope that will all come about and that there will be no losers.
Lana
There are many reasons a company can go bankrupt. Bankruptcy usually happens to a business that is either very badly run or one that cant turn 'debts' to cash quickly enough when it is successful. With positive cashflow it's very difficult to get in that position unless you are......silly, shall we say.
But not when you take a 30% deposit from a number of people and then only go so far building before taking another 30% etc etc. Positive cash flow!!!!!
Cashflow problems can be caused by having a flash Mercedes and a bigger home of your own and gambling debts....ie spending that which you have taken for one purpose on something else. (i'm not suggesting that this applies to this person either as I don't know him or of him. These are merely examples.)
Thats what the late R Maxwell did with his Mirror pension fund. Remember!
