bnbg, page-31

my view about the debt-equity swap plan is that banks get share options and continue to commit their loans to the business, and notes are converted to shares.


that will depends on the degree of asset impairments.
if the annual accounts shows enough equity levels left after impairments, there is no need to convert bank loans into quity.

banks would not accept that their loans are converted into shares to rank equally with other shares holders. for them to continue to lend money to the business, they of course want to take the larger share of benefit of the company's survival. thus, banks would force the company to negociate with noteholders to convert notes into ordinary shares and issue share options to the banks for nothing at low exercise prices.


that is my view only. it could be wrong.