mfs preopen, page-33

Hi,
We talk about servicing a debt - okay that is one thing, paying it off is another. I am talking here about paying it off. We all know debt is easy to get but hard to get rid of.

The scenario we have to consider is that MFS may be asked to repay their debt. The lenders might have that option written in. Now I have no evidence of this (other than the wild market moves) but it may be a consequence of the hedge fund squeeze. I don't know where MFS raised their loans but hedge funds or similar sources are not out of the question.

It might help to look at CIY. No one is interested in unloading that stock. It's hardly turning over yet it's a potential merger partner with a similar debt but this time sourced from the so-called Mums and Dads. Surely the difference must be the way the two companies are funded.

It's pretty clear it's not Mums and Dads selling MFS it's the big shareholders and institutions.
They were heavily into MFS - Merril Lynch had about 6.5%. That's about 30m shares there alone.
These guys won't be trading in complete ignorance, after all they advise MFS!

We have to ask where the money is now and what liquidity there is. It's the sort of nasty question we have to ask. What happens if the debt is called in?

Wrong - okay, I may be but you look at the share price and tell me - if you have better idea.
Cya