"If for example the market price for the shares and hence...

"If for example the market price for the shares and hence hybrids increased to an equated $198 per hybrid would the hybrid holders accept a conversion based on $100, i wouldn't think so.."

Quackie1,
It seems you are not familiar with the PXUPA terms, according to which, in essence, any conversion of hybrids into ordinary shares is to be based on the hybrids face value of $100 (plus any unpaid amount of scheduled interest over the preceding 12 months, or, in a change of control or acquisition event, a part of bid premium over the prevailing market price of the ordinary shares). You may wish to read the terms in the hybrids PDS, a copy of which can be found on PaperlinX's website.

So the hybrid holders would have no upside beyond the above amount regardless of how high PPX price goes, nor do - I would think - they expect any. But the same argument goes in reverse too, ie when the PPX price tanks (as has happened now) in which case the hybrid holders, as per the terms, should have no (capital) downside either, except when the company's survival per se is under threat. And the reason for this expectation is that hybrids have higher ranking than ordinary shares in terms of both receipt of income and return of capital.

And if the company is expected to continue operating as a going concern into the future, an acceptance by hybrid holders of any conversion terms inferior to those they are entitled to as per the PDS would simply be a matter of negotiation ...for the benefit of ordinary shareholders, in exchange for early realisation by hybrids' holders of the value of their securities.

As regards the prevailing market price of hybrids, I am sure hybrid holders would agree with your comment that market price is market price, and I don't think any hybrid holder would have problem with accepting this fact of life, whether it's a result of a bad decision or bad luck!

(Holding both PPX & PXUPA)