For all those that would like to see PPX fail (such as PXUPA holders) thinking they will get a better return on liquidation than on market, thnk again.
Although the company has an NTA (Ord shares) of some $0.27, this does not mean that you will get that on a windup.
I understand that PXUPA have first grab of the dollars and once you factor their interest the NTA is highter than 27 cents, but the NTA doesnt really reflect the value of what someone would pay for the business (if at all) on liquidation. If PXUPA can get $20 on market now, perhaps that is as good as it gets.
The largest asset of this business is debtors and stock. In a depressed market I assume there won't be loads of people buying their stock at cost. That can be pretty much write that down. As for debtors, well who knows how bad these debts are in the coming months.
Take the recent takeover of CPI Group. Similar style of company (smaller scale) involved with paper etc. The takeover of this company was at 45 cents (and that was as a going concern not under a liquidation so a premium paid), a far cry from the NTA of 85 cents.
Before you wish that this company fail and you PXUPA holders get first dibs, remember you will be in line after the hungry liquidators who would probably prefer the liquidation to draw out as long as possible so they can take thier slice of the pie and leave everyone else with nothing. The Ansett iquidation has been going on for years and it looks like the liquidators are the only ones getting any sort of return.
Long live PPX
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