Companies often overextend themselves when the economy is doing well and servicing debt isn't a problem. However, when the economy turns and cash flows dry up they often find themselves in trouble. Many haven't survived but there's still a long list of JSE-listed company battling high levels of debt, including Steinhoff, Tongaat Hulett and EOH, to name just a few.

intu Properties is another. And it appears that after looking under the bonnet prospective investors are backing away from participating in a recapitalisation of the UK-based shopping centre owner. Its shares slumped yesterday after it said Link Real Estate Investment Trust had decided not to back its upcoming cash call.

Ecsponent, a small financial services investor, is also scrabbling for cash and has warned that it's likely to default on preference share redemptions next month.

There's still appetite for offshore property though. Investec Property Fund raised more than planned in an accelerated bookbuild yesterday as it placed more shares with investors. The bookbuild came as it announced it was increasing its investment in European logistics properties, which are doing well due to rapid growth in e-commerce on the continent.

More on those stories to following, along with updates from MTN and SPAR.

Meanwhile, with Sasol's interims results due for release a week on Monday, Ingham Analytics takes a look at how the oil and chemicals group will be affected by a decline in the oil price in its latest report which you can access here.

Finally, Jonty Sacks, partner at Jaltech Fund Managers, explains the "fund"amentals of Section 12J investing. Follow this link to find out more.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

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