Ann: Rural Services Trading Update , page-86

the longer the delay, the lower the price for eld & the better for rhl shareholders.

re eld the most recent relevant precedents are

1. beppa/ bip where the available equity ,left in their wisdom, by the directors was split between prefs & ords, otherwise the ords shareholders would never have voted in favour of the scheme of arrangements.

2. the more recent gns/gnspa debacle where there was total insolvency & zilch left for pref & ordinary shareholders, when the tassie government, having looted the treasury, ran out of funds to prop up the beast & would not sign any further guarantees or letters of comfort.

cashing up to prepare for the rhl issue - it should go at a good price - expect 10-15% discount to 30 or so day vwap.

re eldpa conversion - for a precedent - look to gnspa conversion attempted by the gns directors at the death-nell where there was no listed market in gns on the asx & it was impossible for gnspa holders ,if they effectively received gns ords to dispose of them

these convertible prefs (eldpa) are lethal - companies cannot raise further funds from ord share (eld) issues as they would be giving a free carry to existing pref holders.