Why is the debt restructure such a good outcome? It sounds to me as if they have sold $US15 in shares in order to generate some operating cash because they are in a cash negative position and this temporarily avoids making tough decisions aka "kicking the can down the road".
If my math is right it looks like they have $US205 in total debt yet a market capitalisation of A$145. Sure Book Value may be higher but who wants to buy non performing assets....and what price during a distressed sale?
My next question is who in their right mind would buy at $1.27?
KCN Price at posting:
89.9¢ Sentiment: None Disclosure: Held
