john24k, You are correct in that there is no requirement on the...

john24k,

You are correct in that there is no requirement on the part of Elders to redeem ELDPA before dividends can be paid to common shareholders. In fact, there is no requirement for Elders to redeem ELDPA at any time. ELDPA has no maturity date - it is a perpetual note.

However, you are not correct when you say that 'There is nothing about paying 12 months worth of interest to hybrid holders ...'.

From the Futuris PDS:

3.1 Dividend and distribution restriction
Subject to clause 3.2, where a Distribution has not been paid in full within 20 Banking Days of the Distribution Payment Date, the Issuer must not pay any interest, declare or pay any dividends or distribution from the income or capital of the Issuer, return any capital or undertake any buy-backs, redemptions or repurchases in relation to any Equal or Junior Ranking Securities unless and until:
(a) the Issuer has paid to Holders a Distribution (Optional Distribution) of not less than the unpaid amount (if any) of the Distribution Amounts for the Distribution Payment Dates which occurred in the 12 months prior to the date of the Optional Distribution; or
(b) the Issuer has subsequently paid the Distribution for each Distribution Date occurring in a 12-month period; or
(c) a Special Resolution authorising the payment, dividend, distribution, capital return, buy-back, redemption or repurchase is approved; or
(d) no Hybrids remain on issue.

2017 financial year end for Elders is 30/9/2017 and results are typically released mid November. Assuming that no interm dividend is paid and a final dividend is paid on 31/12/2017, then I believe that Elders would be required to pay an optional distribution to hybrid shareholders covering the period 1/1/2017 through 31/12/2017.

Elders have already shown their hand by communicating their intent to pay dividends for Fy17 and raising a boat load of capital to deal with the hybrids. Investing is a game of patience, and I am happy to wait either for the restart of distributions or for redemption in accordance with the terms of the PDS.

ELDPA only.