I think everyone here, and maybe yourself is thinking about Mt K as a bondholder from 4 years. People need to stop thinking of Mt K as shareholders.
People, need to think of this Mt K as new convertible bondholders. i.e. from this perspective:
1. The Mt K bondholders would like to call-in there bonds (or debt).
2. LYC needs to issue new bonds (debt) to pay off Mt K.
3. Mt X is will to buy those new bonds.
4. Based on LYCs current financial situation, Mt X would require more incentive to buy those bonds.
The only reason, why Mt K does not call-in there bonds is that it would make LYC insolvent (as other companies are unlikely to purchase new bonds issued by LYC), and in the event of an insolvency JARE BV are the only winners. As such, Mt K and LYC have mutual interests.
LYC Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
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