Whilst Centro and Allco will steal all the headlines tomorrow with the first $1 billion-plus losses we’ve seen since AMP dropped $5.54 billion in 2003-04, the biggest story might well end up being ABC Learning which put out this late morning statement saying it would not be able to finalise its results today and therefore is officially in breach of the ASX listing rules.

It’s one thing to release a big loss on the last day of the reporting season, but it’s something else to not even be able to reach agreement with auditors about the latest accounts, plus the reports from previous years which are being re-stated in a far less positive light.

Clearly, there now has to be some risk that ABC Learning could go under after painting an inaccurate picture of its financial health over the past few years. Any collapse would be an extraordinary development as it seems more than $2 billion has been lost in what was meant to be the relatively simply business of running taxpayer-subsidised childcare centres.

CEO Eddie Groves can’t possibly survive this fiasco and litigation funder IMF is already suing the company. This involves one BT alumni in IMF executive chairman Rob Ferguson suing another in ABC Learning chairman David Ryan.

The other big development this morning was the $430 million capital raising announcement by Gunns, whilst its plunging shares remain suspended.

After days of argy bargy, Gunns has not come up with a formula for the raising. It only has a market capitalisation of $681 million, so if it was an entitlement offer it would have been an embarrassing one for one at $1 to raise $430 million. Instead, there is just loose talk of $300 million coming from institutions and $130 million from retail punters and the method is an institutional bookbuild for existing and hopefully some new shareholders.

MFS CEO Michael King was immediately sacked after surprising the market with a shock $550 million capital raising in January, so it is quite surprising that executive chairman John Gay is making no noises about stepping down.

The recent profit downgrade has severely damaged Gay’s reputation and now he wants $430 million when the market is completely up in the air about whether this pulp mill will proceed.

Macquarie, Credit Suisse and JP Morgan will need to perform miracles to get this one away at a price that doesn’t massively dilute long term shareholders.

Today’s 10-page presentation from Gunns makes no reference to the pulp mill as this is all about stabilising the existing $1 billion debt, including repayment of a $225 million bridging loan to its former favourite banker ANZ.

Peter Garrett approved the expansion of a uranium mine yesterday but he might yet avoid having to sign off on a Tasmanian pulp mill.

Whilst few will say it, there won’t be too many Labor types across the country shedding a tear for Gunns and ABC Learning. Some regard their troubles as continuing good karma after the defeat of John Howard last year.

* Disclosure: Stephen Mayne spent $3000 on Gunns shares this month at $1.88 a pop. The stock last traded at $1.675.