Ann: Change in substantial holding, page-25

Whilst I agree that it's a great deal for Oaktree and they are well placed to take over the management rights, the thing is, it's not that simple for Oaktree to just step in and take the management rights as they see fit. They need to put BLA in breach (assuming of course they have breached), appoint a receiver, have the receiver go through the appropriate process including running a sale process for the relevant assets and Oaktree will have to bid for those assets (presumably by agreeing to write off their loan).

The other thing is that by deliberately setting covenants so tight that there is a very high probability of breach on the first testing date, they risk allegations of bad faith and having the facility agreement subject to a legal challenge. That's why I wonder whether there was some non-disclosure or other kind of error as it is unusual for covenants to be breached so soon.

Anyway, I guess we'll see what plays out over the next few weeks/months.