Ann: S&P Ratings Services Downgrade, page-12

If you use the format of the last BLY crash and recovery this is a very likely scenario.
1. Company puts a floor under the SP,at last.
The first part of the floor this time would be Obriens current,key statement as to survival.
The 2nd part of the floor is constructed when the Company announces a company-saving issue,underwritten by somebody who may,or may not,have a stake in the company-in the latter situation it will be somebody who is more than happy to take every share you or I are prepared to let him have.It could be a creditor.
2.The issue has GOT to be non-renounceable.It is likely to be ABOVE the last sale price.
The simple increase in the companys survival prospects should have already started (today -)an upward drift in the S P.
3. The numbers could look a lot like this:
Current borrowings causing the trouble- say $620m
Current M C- $46m (at 10 cps),dwarfed by the borrowings ("Shareholders should always have more at stake than creditors").
Issue terms- 5 for 1 at 15 cents= $345m of new money.
All the $345 goes to reduce the $620m,leaving $275m outstanding.
New M C = $414m.(2760m shares at 15 cps).
4. Beutel? They obviously wont be the underwriter! Who has picked up ,or will pick up, their shares? Any (small) number of parties.
Word of advice- don't waste your time bleating that the issue is unfair because its not renounceable. The "fall-in"from those who cant see their way clear to subscribe is needed to keep the underwriter satisfied.
Wont work?? Did last time. Apply for more than your entitlement,if you are able and want to prevent the massive dilutiuon that will occur if you don't.