One option outlined "involves CNP lenders agreeing to a debt-for-equity swap -- and perhaps raise some fresh equity -- to bring the assets under the CNP umbrella. This is the more ambitious -- and controversial -- scenario because it will mean CNP securityholders will end up getting some sort of return despite the fact the head stock is carrying negative equity value.............
it is too early to tell which way it will go, perhaps the fact hedge funds have been piling into the CER debt in recent months is an indication." - The Australian
Unless I am missing something, if the option favoured is that CER's debtholders get a debt to equity conversion in the restructure we have a dilution to look forward to...... Nice.
CER Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
