Ann: Chairman's Letter to Noteholders, page-36

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Sojourner

6,558 Posts.

1974

30/03/16

23:25

Post #: 17386767
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Originally posted by damascus ↑

No amount of finger pointing, armchair analysis, complaining to the ASX or rear mirror advice will change the fact that right now the company does not have the money to fund redemptions , so in the next 24 hours the only thing that matters is the vote tomorrow.
If note holders do not vote in favour of resolution 1 , the company will be placed in voluntary administration or file for Chapter 11 bankruptcy in the US , I'm not sure which one. This process could drag on for 6 - 12mnths anyway or an administrator may quickly work their way through what little cash they have and now diminished value of BBEP shares and then immediately run another sale process.
What some here refuse to grasp is that if a sale process of over 250 potential buyers did not result in an offer , what is the chance that noteholders will get any offer now 2 months later. Yes the oil price has moved higher but even at $38 this ground ,with no surface infrastructure or production is STILL UNECONOMIC. The only thing that will change that is a higher oil price which requires more time. Why potentially force a firesale at the worst possible time. Once that process is in motion there is no turning back.
Not one person here, including TT200 can guarantee that placing the company in VA will get noteholders all their money back or over what time frame.
Voting for resolution 1 allows the company to continue to engage with buyers as a going concern, they get board representation which must be a better option than some backward looking investigative accountant , on the job for a few weeks. That board representation will see them included in all current and future offers. They get accrued interest and a potential exit payment of between 10 and 20% of their face value and a better conversion factor providing further upside optionality if a good price is achieved.
Surely that has to be a better option than some scorched earth approach some are suggesting here as the best way forward even though they hold no notes and by their own admission have already written off their own investment.

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TT2000/halo just wants to blame someone else. He goes off and whinges to the ASX about AZZ not disclosing the buyers name. He should have known when he did this it was a possibility AZZ may have dug its heels in and sold his shares and waited for the response. Instead, he wanted his cake and the whole hog and held onto his shares, and so when AZZ unsurprisingly dug in its heels and got suspended, he stuffed himself and now is looking to blame anyone else.

AZZ Price at posting: 50.0¢ Sentiment: None Disclosure: Held
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