Lordbolean is right in many ways. Anyone about to deal with the company now will be looking for a major bargain - whether it is buyers of oil, who will certainly try for a discount on the Galderma price, buyers of wood, investors in new plantations or prospective "buyers" of the company.
What the company needs is time and breathing space - to more fully explore markets for finished product, to maybe renegotiate timeframes with holder(s)of puts, to let the trees add a bit more bulk (and value?) ((Hey, it'd be almost impossible to stop them growing)) and to cut back on operating costs, because plantation investmestments will likely take some sort of a knock for at least a year or two.
What will stop them getting breathing space? Well, there is not much debt due for a few years, also there are some plantation "puts" but whoever exercised them would have to cosider the implications for the company's liquidity, with implications for their other plantation interests and indeed the company's future.
So, the people who could choose to give them breathing space are: 1. The holders of the plantation puts, and/or 2. the major debtholders, Blackrock, who have some equity as well and/or 3. somebody with patient captal who was prepared to subscribe additional debt or equity.
It seems to me that both FCW and Blackrock have a fair bit of skin in the game and I can't really see that either would find it appealing if qin should fail, even if assets could be picked up subsequently at a good price, albeit in competition with other bargain hunters. My OPINION (note ONLY my personal view) is they would be likely to be prepared to commit a bit more and support a sensible change of control transaction.
I repeat that what the company needs is breathing space and, in that context, I am very relaxed about the two week extension to the voluntary suspension.
Expand
