The company has announced that a debt for equity swap with the banks is one of the few remaining pathways to survival.
The question is now whether banks and shareholders can reach an agreement that enables this transaction to go ahead with acceptable benefit for both parties.
One issue that concerns me is the court case pending against the company. How can banks agree to be equity holders with this unpredictable cost hanging over the company?
If the banks put the company into administration are they still liable to pay compensation if the court case goes ahead or does putting the company into administration nullify the case?
I am sure this would be a factor in their decision.
CNP Price at posting:
9.4¢ Sentiment: None Disclosure: Not Held
