I have to say that I'm intrigued by the background to Oaktree...

I have to say that I'm intrigued by the background to Oaktree deal. Whilst funds like these guys are commonly referred to as "vulture" or "loan-to-own" funds, it's pretty unusual and in fact embarrassing for Oaktree to have a loan that breaches its covenants at the very first testing date.

Far better for Oaktree to be sitting on their upfront fee, 17% interest plus whatever value they might assign to the conversion rights rather than having to work out the loan so soon after inception.

I wonder if they were misled by management or whether there was something that they totally missed in the DD or financial modelling? Very interesting...