''Although the company has sufficient cash to make the outstanding interest payment on the notes, such a payment would reduce the company's ability to fund it's operation during any debt restructuring process'
Correct me if I am wrong, but doesn't this mean 'we cannot afford to fund our debt restructuring process and pay the outstanding interest and operations.'
In which case they placed a higher priority to the debt restructuring than actually paying the debt, and therefore a higher priority to the creditors than shareholders.
I think it's fair to say that the costs of the restructuring, and the operation costs and the interest costs were unable to be met at the same time.
Therefore they chose to default on their interest repayments and neglect their responsibilities to shareholders in favour of a recapitalisation deal that would leave shareholders empty handed.
If you would like to join our class action group, email
