Ann: Administrators Appointed, page-119

The only thing working in favour of shareholders is that winding up of assets is unlikely as it would result in a poor return for both secured and unsecured creditors.

The assets would need to be sold for amount equal to the loan principal and loss on the hedge book for MAQ to recoup their potential losses: both of which have a combined value of $150M. It's unlikely we will receive bids that allow MAQ to settle their exposure. Plus, MAH whose actions prompted the appointment of administrators, would receive no return on their $40M exposure.

Recapitalisation would yield a better return for creditors in the long run and this path would see shareholders retain some value.

I would love to see if the 'unsolicited approaches by various institutions to refinance debt' come to the party or if DR was talking nonsense.

Who would have thought that low grades could potentially work in favour of the shareholders.