at last melua, we agree.
The way the prefs stand at present, especially with the interest accruing, well they stand to cripple the company if they are allowed to carry on in existence as they are now. And there will come a point where selling off good assets for less than they are worth to deal with the prefs issue will actually be wealth destructive for the company.
There is nothing the company can do about it at present as the corporate debt and both sets of bonds are blocking the way, but once these are cleared away (hopefully sooner rather than later) I too think some sort of restructuring of teh prefs along a part cash part share swap basis is inevitable. The point is they need to clear these issues up and quickly. All of DBCT being sold allows them to get at other parts of the business that desperately need their attention.
The killer factor at present is potential dilution. The prefs are by far the biggest part of this problem. By limiting the dilution in a restructuring, any ords they offer as part of this process will be worth a whole lot more.
The patient is sick, but saveable.
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