It seems like there is a number of uninformed and overly simplistic comments on this thread about the VA and secured creditors. Firstly, we do not know the particulars of the 'secured' clauses. And i would suggest a $40m default does not allow anyone to take possession of the assets to claim them as their own. And even if it did, they are secured to the tune of $40m. So what does that mean? The asset is sold at an 'arms length transaction' (already ruling out GXY) and they get their $XX. So what exactly does that mean? They get first bite of the cash when the pie is sold.
Genius move by a neighboring competitor designed to pick up a cheap asset? That is impossible, plus illegal. It is also silly. See a VA, or possible liquidation can trigger a sale process open to everyone as the Administrators/Liquidators seek the best price for the asset. No one can just take it for $40m (assuming it is worth more than that).
While i can't say for certain, my tip is someone tried to strong-arm A40 and they called their bluff with a VA (automatically extending the standstill). You see a VA will produce detailed reports, after reports and valuations after valuations. No one can pick this up for cheap. Not now anyway.
So what is GXY playing at? I suspect nothing other than a larger piece of the A40 pie. I am still tipping a recapitalization, but probably through GXY on better terms than Turnbull was offering.
We have some pretty serious competition/commercial laws here and almost everything is 'discoverable' nowadays.
