It is going to be very complicated and not a done deal. Yet.
They will ask the banks to take a massive haircut and replace that deficit with their loans. Presumably recorded as a liability. This is important as I really can't see how ARI liabilities are reduced. They are taking away and adding back in. That post I put up was the best explanation I have heard.
I guess Blackstone is acting like a cash facility as opposed to a fully paid up loan. It comes with high interest and a not taking on any fool attitude. The 665m will be drawn down and sucked up as needed as opposed to a lump sum payment. Which is how I guess they improve the balance sheet in the short term which is what they are looking for. So less debt.
I imagine they will try and sweeten the deal as the barber with some part repayment offers for existing bank loans. So the offer will be half your money back one day and a little bit now. Obviously a very complicated negotiation.
Blackstone will end up with significant equity. They will be the owners. They will also not have any unsecured bullshit that the stupid banks agreed to. So if ARI struggles with the load and the operating environment they will have all the voting power and first crack at the assets should they decide to wind it up
Yummy yummy Moly Cop.
Further they will attempt additional fresh equity through cash via another capital raising. They may also control this process and fully fund it. That is obviously the reference to the potential 90% equity stake. There is also emergency cash to be made available.
WOW. Backdoor Blackstone.
You could wait and see what happens in 6 months with the covenants and see if she cracks, then SWOOP DOWN and ROARING LIKE A MOUNTAIN LION should administration eventuate.
Do you think they will get a 10 year repayment plan in the current form with an interest free period for the next 24 months until things improve?
