new lows, page-10

I agree bluefur they cannot buy PPX shares and IMO they cannot buy PXUPA either even though they mentioned such a possibility in a recent communication. Other bloggers have also mentioned the possibility of company buying PXUPA on market at the massive discount now available.

The way I see it is that PXUPA are units in the Paperlinx SPS Trust which owns preference shares in PaperlinX LLC which is a subsidaiary of PPX.

Now in clause 1.4 (of prospectus)it refers to "any class" of its share capital, cannot be bought.

I would argue that preference shares in a wholly owned subsidairy do form a "class" of share capital in spirit of this clause.

Thus buying back PXUPA is in effect buying preferred shares in a subsidiary and is prohibited by clause 1.4

Also in general terms PXUPA are considered to be "hybrid" securities which are a mix of debt and equity. The very facts that distributions can be halted and conversion to shares can take place would IMO confer some equity status to PXUPA and thus be a "class of share" in terms of clause 1.4.

There is room to argue that buying back shares in a subsidiary is not the same as buying back shares in the company but I think you can see that this argument does not "taste" good particularly when PXUPA is generally considered to be a hybrid.