anzac day arrives early at paperlinx, page-21

Aussted,

IMO - irrespective of what the Board's fiduciary duties are, you will find that the reality is that the Board will act in equities interests and against those of the hybrids - just look at the make up of the Board. For this reason the hybrids are at a distinct negotiating disadvantage - they have no funds to pay advisers / lawyers to negotiate and look at the documents properly and none of the major holders will want to pay because they will be subsidising the other holders - don't expect US hedge funds to be generous. The RE will not want to do anything - costs too much - no upside for them etc. This is one of the fundamental flaws in the hybrid structures. However, the Board and the company has access to the company cash flow to employ advisers (Moelis), restructuring lawyers, etc as do the Banks.