I don't think you are giving GXY management enough credit for their astute investment in A40. GXY is now, by way of a breach of debt covenant by A40, in the box seat to either cherry-pick the assets they want or simply buy the whole company for a fraction of the price they would have been required to pay with an on market takeover offer.
Essentially, Tribeca (financiers to A40) want to extract themselves from the pickle they are in for the full entitlement - debt recovery, interest and penalties. They are not able to command any sort of takeover premium or in fact achieve any more than their entitlements under the loan agreement(s).
The fact that GXY can offer a quick settlement (cash not debt) would be of extreme value to Tribeca and could be the catalyst to facilitate a quick deal.
Whilst I am not privy to the terms of the loan agreement(s) between A40 and Tribeca, I can almost guarantee that A40 management and shareholders will effectively be mere passengers in any negotiated outcome as the creditor will be in control of negotiations.
Whilst I feel very sad for A40 shareholders, these times remind us that the stock market has its risks and sometimes the risks are realised.
