Ann: URF executes Purchase and Sale agreement, page-58

URF investor relations is saying, in writing, that only ordinary unitholders can vote. notwithstanding the chance (reasonable imo) that this is litigated by pref holders, assuming this is true. there is absolutely zero rationale for the transaction at current price, and i expect it to be voted down. the status quo - even with the ridiculously high running costs - is infinitely preferable to selling at a guaranteed, locked in ~20% net discount to book, and crystallizing (in terms of book discount) the high prepayment costs on the debt which would actually be a great piece of funding if this business was continuing as a going concern (look at where long-term rates are going).

the other part of the equation is the forced conversion of prefs from Jan 1 next year. if this were to happen (highly likely, almost a certainty given the step up language in the pref docs), the seniority of the prefs in the waterfall is removed; and the implied look-through equity value to ords - even with this incredibly shite deal - is more like mid-30s c per share.

again - it is totally obvious this is a wildly superior outcome than selling now at 20c or whatever. this is one of those rare deals where if it breaks, in most any scenario the stock price should go a lot higher, not lower.