I read today's AFR article on this very issue and they put a different spin on this.
They look at the buyers of the debt more closely than why the debt is being sold. Some of the suggestions made in the article are:
1) Could be an opportunity to flip the debt and sell out to another party at a higher rate once the restructure process kicks into full gear early next year.
2) Could be part of a more long term strategy by well capitalised hedge funds who see a lot of value in the CNP entity and recognise that when a recovery comes back the companies that will run the hardest are those that are the most highly geared.
The main premise of the article is how a possible turn around could be looming.
Yes al speculation but adds to the pool of knowledge sites like this facilitate.
CNP Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
