One of the problems with Freida is that we don't know all the...

One of the problems with Freida is that we don't know all the details of the agreement between the parties,that I suppose is why we appoint a board and management team.
We know certain things but we dont know what we don't know. We make a judgement of the worth of Freida on known facts, and assumptions which may or may not turn out to be correct.
One of the facts that became known back in the time of Xtrata when they took over Freida,but has had little air time since, was a debt funding agreement between the parties. Xtrata was to include HIG's share in their debt borrowings or alternatively provide guarantees if we borrow in our name. At the time there was speculation that debt to equity would be 60/40 but because Freida was such a good prospect it might be 66/34.
When Glencore absorbed Xtrata that liability would have gone across with it, as I am sure it would have with PanAust then Pan/Gram. Of course it is highly unlikely that we will ever avail ourselves of this facility because equity is the real problem.
However it must be worth something to Gram not having to fund/guarantee our debt or worth something to another buyer of our share of Freida , if the debt facility goes across as well.
What do any Philadelphia Lawers out there think of that.?