good news for pif holders, page-14

Not sure Tuart,I am not qualified to comment on this, I will post a few references from todays papers and invite comments from others:::::: Arctic has agreed to underwrite (with other sub-underwriters) a minimum $90 million renounceable rights issue (at 7.5 a security) for LLA, subject to conditions, including the right to buy $63 million of LLA's unsecured debt from the Octaviar Premium Income Fund. :::::::::
The LLA recapitalisation proposal includes Arctic agreeing to acquire $63 million of Living & Leisure's unsecured debt from the Octaviar Premium Income Fund, which until this week was known as the MFS Premium Income Fund.::::::
Arctic will also take control of the responsible entity under the proposed deal.

The deal is good news for unit holders in the unlisted MFS Premium Income Fund, who have had their distributions and redemptions frozen for the past three months.

In return for shedding its debt, Living and Leisure will pay an upfront $30 million to MFS Premium Income Fund plus an extra $10 million over two years. It will issue a further 88 million shares to the fund::::::::
It said Arctic had agreed to underwrite the rights offer, subject to a number of conditions including Arctic’s acquisition of the majority of the company’s debt facility with the Octaviar Premium Income Fund and the support of NAB in the refinancing of the company’s senior secured debt in conjunction with the rights offer.:::::::::
Arctic has agreed to purchase $63 million of Living and Leisure from the Octaviar fund, subject to the completion of due diligence and documentation that is agreeable to Arctic.

In exchange for the approximately $7 million of remaining debt held by the Octaviar fund, Living and Leisure has agreed to issue the fund a $10 million zero interest note, repayable in two years after the rights offer.

The exchange would also see Living and Leisure issue the fund 88 million new Living and Leisure securities, following the rights offer, and options to subscribe to a further 88 million new Living and Leisure shares at the offer issue price in the 12 month period after the rights offer.:::::::: I am just not sure if the $30million cash payment,the $10million interest free loan and the $88million shares in LLA is the payment for the debt in full. (And yes Beermoney,I really have no idea about this and am looking for all the help I can get!!!!!!)Cheers, Seamisty