I read all City Pacific is putting out about their proposed offering of Converible Prefernce Shares in CIY, that they CP are expecting to offer to the CP/FMF unitholders. They say they will be transferring the proportion of income per unit with the shares that are taken up, stripping that much income from the FMF. BUT I've written to City Pacific 4 times asking same question, the emails are asknowledged, but no answer is given to the following question:- What about the debt to the Commonwealth Bank (as it will stand at the time of the City Pacific/CPShare float)would be $120M or less, plus the $100M debt to Fortress. Both these debts have first preference to be paid back, prior to the FMF unit holders redemption money. Will the proportion of those 2 debts go with the proportion of income per unit in FMF, with those unitholders that take up the new City Pacific/CPShare float? I cannot get an answer to this from City Pacific. It seems to me that if they leave these major debts behind (and take the income as sent out above) they are effectively writing off any possibility of FMF surviving and existing redeptions ever being paid and I think they will wind up the fund.
I read all City Pacific is putting out about their proposed...
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