How many redeemable bonds?
Synlait have done this before but only seem to dig themselves deeper into the hole.
Banker debt was NZ$244. So do they get enough bonds to clear bank debt. (Wasn't that what the last bond issue was for?)
Add in another Nz$180m for subordinated unsecured bonds. But if you create bonds to pay off bonds at what point have you created a ponzi? And why would you create new bonds to pay these people off?
On Tuesday Synlait will announce a loss. So how are they ever going to create enough profit to pay back bonds. Dairyworks clearly isn't selling and Talbot is worth nothing.
Why go down the redeemable route?
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