An important turn could be taken by Fisher & Paykel Appliances' path out of debt valley on Wednesday, when it would launch a capital raising proposal and banking refinance package.

It has been learnt that a new cornerstone investor and a rights issue top up to raise $200 million is the most likely scenario so far. Reportedly, Chinese company Haier has been conducting due diligence, with the aim of acquiring a stake in F&P Appliances.

If adhered to managing John Bongard, the capital management initiatives in their totality are still incomplete and the company is not yet in a position to announce them.

It must be noted that there are lot of important issues which must be considered by the shareholders.

The foremost being, if the company is able to free up funds through the sale and lease back of its 14.5-hectare East Tamaki site and property in Cleveland, Australia, then the proposal would be more palatable.

Second would be the performance of F&P's finance arm and third would be as to how the company sees the trading outlook for the remainder of the year and into 2010 will obviously be the catalyst for how well supported the capital raising is.

(via TopNews New Zealand. Contributed by Surjit Singh)