Ann: CLH Portfolio Enhancement Programme - 2nd Balbec Transaction, page-12

Joda

The theory makes sense, but the numbers are way off.....can't imagine Balbec paying 50c for a $1 face value in debt and CLH being able to buy $1 debt at 12.5c.

The crux of the issue is that why buy PDLs if all you are going to do is sell this to Balbec; this to me only makes sense if they are selling the PDL at a profit to existing book value, or they have identified some PDLs on which they are likely to make a better return than what they are selling (the services side is low margin, so apart from pushing more work that way, not sure it adds much to the bottom line).