re: Ann: Market Update in relation to Paperli... Firsova,
The following points out how priority works.
If I use the figs provided by Rick.Wills.99 in a post on 24/9 the current "scrap" Value of PPX would provide $71 per PXUPA.
As $71 < $100 (ie 71%) then PPX holders would get $0.
This has some similarities to the BIP/BEPPA scenario a few years ago where BEPPA received 40% of their investment and BIP received 4c (or so) just to get the BIP vote approved.
As you can see, when 'push comes to shove' priority means everything in terms of assessing risk.
If PPX can remove $285 mill of PXUPA from its balance sheet at a price < $100 per PXUPA then it should see an improvement in PPX price, plus frees up PPX to consider all options available in the market and provide impetus to any recovery.
This is the benefit to PPX holders and why PPX should be aiming to strike a deal with PXUPAs.
PXUPA holders take a haircut but can move on as they invested in PXUPA as an investment - and not PPX the company.
Does it make sense to PPX and PXUPA to get the deal done - yes.
Will there be argy bargy along the way - yes.
Potential for both to make the best of the situation.
Currently PXUPA only
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