Ann: 31 December 2016 Results Media Release, page-42

* Kerogen is partly responsible for the mess. They took a board seat, they took forever to improve governance, they let AC / Swan et al. off the hook, they didnt stop Oz Ops from investing, they didnt split the OZ/UK business and clean up capital structure - so much for a "private equity" hands on approach. They have had enough time to influence change, and in the end they encouraged activities that would otherwise not have been tolerated and sought to benefit from this insanity instead by financing it.

* The equity raise is a condition of the Kerogen and OCP facilities, not the OCP facilities only as per your impression. They are forcing this liquidity to protect the debt investments. Underwriting the equity could be viewed as cost of doing business, until the fair-value of UK assets on the balance sheet can justify further corporate action.

* Remember that OCP and Kerogen facilities have AJL's UK assets as security. This is an important distinction in terms of who gets what. A breakup may see them get a smaller % of UK, which would actually be more valuable than a greater % of the AJL rump. If you're just looking at debt/equity % ownership your missing the subtlety that they are really backed by different quality assets in a breakup.

* As for capitalism, I am willing to lend money to AJL (secured by their holding in Cuadrilla) for 500bps below what OCP and Kero are offering. Will they take my money? What do you think?