If the directors put the compnay into voluntary administration TPG would quickly follow with receivers and the administrators would take a back seat to the receivers.
There is no doubt receivership or voluntary adiminstration would be bad for all interested parties . It only adds to the cost, massily delays all outcomes and reduces potential returns. TPG dont want it, ( they lose control) They may appoint receivers but recievers are usually highly trained professionals that do not take sides . They are bound to maximise the returns for all parties.
The directors really really dont want any form of admistration. It will put the spotlight on them and require considerable amount of their time performing unpleasant tasks required by the adminstrators
Anyway to me It really looks like a giant game of chicken. The best result for TPG is you take the 10cents and shut up . The best result for shareholders is more than 10cents. the worst result for everybody is adminstration. Who's going to flinch first
AEJ Price at posting:
9.4¢ Sentiment: None Disclosure: Not Held
