Oaktree see some potential and they will no doubt extract it -...

Oaktree see some potential and they will no doubt extract it - these guys are smart - but whether that leaves anything for the ordinary shareholders remains to be seen.

The Nine Entertainment is a classic example - after the private equity owners loaded up on too much debt, Oaktree and Apollo swooped in and bought up all the senior debt for cents on the dollar, and then converted it all to equity, completely wiping out the existing private equity shareholders and 90% of the second tier lenders. They then relisted it on the ASX making a killing.

I'd much rather be investing in Oaktree than in BLA.