profit discussion, page-8

I only think it's a strong hand if you are willing to sit in limbo for eternity. I suspect it will be difficult to get approval to convert at less than face value. That would require a special resolution and 75% acceptance. It will only take one or two holders to scuttle that idea.

Their is no denying PXUPA holders are entitled to $100 in cash or shares. Its the WHEN that is an issue. And being perpetual that is technically never.

European debt holders need to approve a cash buyback or interest payment. So those options look out the window. Hence script only offer.

They can force 100% conversion into shares but it wouldn't really get anyone anywhere imo. And if PPX trades at a discount to NTA then you might at best recover $60 by selling the PPX from conversion. And any write downs would erode that further.

I'd say the time to accept a discounted offer is now. I suspect waiting will only have worse outcome at this stage.

I've been topping up my PXUPA in anticipation, but will sell a few off if nothing develops in 3months on the conversion story.

If you think the conversion is needed (ie PPX are pressured) and you have the upper hand, then their are only two reasons. First a take over, or second a recapitalisation.

Now conversion at face value is pointless in making PPX more attractive for takeover. Because the buyer would still need to come up with $285mil to buy the new PPX shares. It's only cheaper and more attractive if it converts at discount.

And if it is part of a recap, then full conversion really does take most if not all the meat off the bone. Can you imagine another 5bill shares on isssue at 6c? Who would then chip in more? And at what price? Sp suddenly falls and your $100 worth of PPX is worth significantly less.

Not to mention, if it looks likely to go down that path their will be a death spiral. The threat of dilution will push sp lower which means PXUPA converts into even more shares which in turn lowers the PPX shareprice even further. They wont go down that path.

Personally I'm hopeful of a resolution, but I'm not expecting one. I just think the difference in offer versus expectations may be too far apart. And negotiations will lead nowhere.

Their just isn't any pressing need or benefit to convert at full face value. Their are benefits only at a discount. The discount makes takeover cheaper. The discount adds meat for a cr.