re: Ann: Request from members to hold a gener...
The big sweetener is if they get to use the tax losses, which from memory were around $80M.
This is the key for me. If I get offered new units in the recapitalised entity and this entity has use of those tax losses, then this is definitely worth a go.
The way they are approaching this is correct. They give existing holders the chance to opt out at current cash value or stay in if they want. I cannot see what anyone has to complain about. If people want to cash out, then cash out.
Obviously these people pushing a recap are very pointy headed folk. Some of them have a very chequered history (to say the least) but they are obviously expert in their areas and won't make the same mistakes again.
I am noticing that post GFC there are very few players left in the mezzanine and fringe finance sector, so there is room for people smart enough to simply tap into a lot of new business.
I think this is a smart play.
MXQ Price at posting:
15.5¢ Sentiment: None Disclosure: Held
