be patient... and thou shall be rewarded!, page-8

The concern is that PPX do the following:

a) Reset and get hit with a penalty
b) Stop paying Interest on PXUPA
c) Wait a while until PPX recover then convert the PXUPA to ordinary shares


Therefore, unless you were really long on PXUPA why would you want to hold if there is a real risk of having distributions halted.

I suspect the big holders believe that with the ongoing restructure of PPX, this will limit free cash reserves that will put a stop to distributions to PXUPA. Sure PPX shareholders can't get paid a dividend until two distributions are paid, but does any PPX shareholder really expect a dividend payment.

Don't get me wrong, I am a large holder of PPX and want to see it suceed. If I was PPX, I would establish another entity (if that is possible) and start acquiring PXUPA on market while the price is so low. No doubt there is probably something in the Step-Up rules that won't allow this.