elvisthe biggest risk IMHO for the lenders is not the...

elvis

the biggest risk IMHO for the lenders is not the competition from other buyers for the assets sahould the directors put it into administration but the fact the whole thing unwinds. For example there are substantial tax losses sittting on the books that would evaporate should aej be broken up, not to mention the contracts that are in place could be voided and the big one is that the debt is non recourse to the vehicle that actually owes the money.

Now remember the bulk of the current lenders paid somewhere around 60 cents in the dollar for the debt, but the offers for the company as per the company announcement 'would not repay the lenders in full' in other words they would not get 100 cents in the dollar back (now thats not a bad return!) and they offer holders something like 5% so they have a BIG way to move and still make a killing!

So bankers either give us a fair slice of the action or there will be a BIG no vote in a couple of months!