2 wells cedar hor and re at kirby, page-43

My view is that Feetsie is correct regarding UBS’ use of Newtron’s (PB’s) shares.

Regarding CS’s use of Newtron’s shares,
(1) I don’t think PB had any option if he wanted the funds from the Convertible Bond,
(2) he didn’t expect the use of them would have such a detrimental effect on the S/P (on ASX), and
(3) he had a somewhat backstop of approx A$2.70 min as a conversion price of the Bonds

With the transfer to the SGX, this backstop has been reduced to approx A$1.80 min which was revealed in the SGX IPO docs. (USD$200 convertible bond could convert to over 120M shares).

Talking to PB in Oct/Nov he certainly doesn't wish to lend shares again

All this highlights the fact that LNC needs to operate at a profit very quickly and/or sell assets very quickly as its borrowing power is becoming weaker by the day.

Any further borrowing is likely to have harsh conditions and/or very high interest rates with the possible exception of an increase in the loan against US oil production.

I had thought a succession of positive announcements from early Jan 14 through to May 14 would push the S/P up around S$3.00 but this looks less likely now.