"i doubt there will be much action for a while. it will take about a year to pay off debt, and there is not much that they can sell now that is above 95% face value."
I strongly disagree with this and the point of the review is to find a way to sell of the portfolio now and pay back debt and unlock value of the NAV now rather than later.
You are missing the point of the debt review. The 95% issue and also the 90% issue as well are irrelevant in this context and this is why they appointed a debt advisor to review all of this and also the paying off of the debt early as well.
If a deal is put on the table soon to clear off now at 35 cents or so and unitholders have to vote on this to make it happen, then it will happen as most will take bird in the hand right now. The fund is too small for it to pay off its debt and still be viable. They will wrap it up.
And you won't having any trouble selling most of their portfolio as there is strong worldwide demand for yield assets at present. Someone will likely buy the whole lot in one go and Aquasia would probably want to sell the whole thing in any case rather than in bits and pieces. I am sure if the sale of the assets is put out to competitive tender that they will get a good price with interest rates globally being so low.
Have a brief read of the Aquasia website and look at the make up of their funds and you will see what I mean and you will also see why they were appointed as the debt advisers. Google then and you will see.
Good string of discussion back and forth. Everyone's input is helping build up intel on this one. Keep it coming.
MXQ Price at posting:
25.0¢ Sentiment: None Disclosure: Held
