I put another call in to Investor Relations at Gunns today. (i...

I put another call in to Investor Relations at Gunns today. (i thought I had it right yesterday but got a bit confused so thought I should check again)

First of all, we do not lodge Holder Exchange notice as this would trigger minimum conversion as you correctly point out.

So what re the options? My understanding is as follows noting I am still waiting for Investor relations reponse:

GNSPA will either (a) issue exchange notice (b) step up or (c) re-offer.

I think (b) is not likely (expensive debt); And (c) is possible but they need to get at least 25% of noteholders to accept. Would involve a book build process.

If they do re-offer, then there are two groups, those who accept and those who don't. The question is what happens to the ones who reject? Prospectus states they can be left on existing terms.

My read is that those "existing terms" include the Step Up margin which is oart of terms of original offer. I am waiting for confirmation of this by Gunns. If they confirm that, then rejecting re-offer allows some to take up new offer and some to reject (resulting in Issuer Exchange);

I believe isssuer exchange will result in equity.