'The art is to buy distressed instruments at low prices and get...

'The art is to buy distressed instruments at low prices and get massive running yields and decent capital gains'

Yes, well put, and I've seen lots of instances where this has worked a treat.

But, for it to work you need to be able count on some kind of fundamentals.

The easiest way to see this is in the case of bonds that are in default where you can calculate a return based on the realisation of assets.

This situation is a bit different, as you've ably pointed out here on a number of occasions.

Holders are not going to get massive yields unless ppx can return to such health that it wants to pay dividends, which in turn would trigger distributions on pxu. This would provide the capital gains.

All I can see at the moment is ppx struggling for survival for a number of years, not paying dividends and just leaving pxu to languish. I can't see that the Board has any incentive to do otherwise.

I think there are better distressed situations around, but perhaps you with your understanding of this play think otherwise?