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Oaktree won't convert the loan, because their conversion price...

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pikel1980

456 Posts.

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17/04/19

09:50

Post #: 38175184
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Originally posted by charlie.boy: ↑

Do Oaktree still have to go through the receivership process with the conversion rights they hold? I thought it was only subject to shareholder approval i.e. Oaktree say we elect to convert, BLA call a meeting and put it to a vote, if it's approved then Oaktree convert, if it's not then Oaktree call in the loan.

As for any allegations of bad faith, that will get laughed out of Court. BLA are supposed to expert investment managers, if they cannot identify that the covenants are not in their favour and that a breach may occur at the first testing date, then that is their own fault, no one else's.

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Oaktree won't convert the loan, because their conversion price is $1.80 or something.

They will just demand payment and the directors of BLA will put BLA into administration, the assets of BLA will be put up for sale, Oaktree will place a bid on the assets for whats they are owed or they will make an offer for the parts they want.

One of two outcomes for Oaktree at that point, they own the assets or a mysterious buyer rocks up and offers more than Oaktree and Oaktree get paid. The process will take about 3 to 6 months.

40+ million profit in 12 months - Boom.

BLA Price at posting: 31.5¢ Sentiment: Hold Disclosure: Not Held
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