If you were a hedge fund ? What would u do ?, page-53

Hello @Sandvik

What a gentleman and a scholar you are. I love how you ask someone to do you a favour while attempting to disparage them at the same time.

I'm not sure you can claim people are "right" or "wrong" about something that hasn't actually happened yet.

Do you believe Debt-for-Equity will NOT happen - in spite of the company themselves suggesting it is the most likely outcome in their statements to the ASX in March?

Maybe the company itself is a stupid, wrong bear??

Anyway, I'm not sure quite what you would want explained here...

If you had followed the conversation to which QueenMary was responding, it went something like this...

Your old mate @Successwillcome posted an article about Contech being sold, purporting that it showed how hedge funds investing in a business produce favourable outcomes for stakeholders.

@QueenMary and others (me included) simply pointed to the FACT that whilst the business being recapitalised and turned around by the hedge fund might indeed have been a good outcome for the employees and customers of Contech - and for the OWNERS of Contech (i.e. the Hedge Funds) - it was NOT in any way a good outcome for the prior shareholders of Contech who received NOTHING from the transaction, as their prior equity stake had disappeared through the recapitalisation process.

In other words - those early Contech shareholders - who were in the same boat as SGH shareholders now find themselves - got nothing from the $950M sale of Contech.

In other words - SWC's post actually proved the opposite point to the one he was trying to make - and perhaps underscored the point several "bears" have tried to make - that a deal which may be "good for all stakeholders" does not necessarily mean it will be "good for shareholders".

Anyway - I don't want to burst anyone's bubble here - please continue believing whatever you wish to believe about how debt-for-equity won't happen - or will be done at gift prices, that hundreds of millions of dollars in debt will be magically erased by well-meaning elves dressed as hedge fund managers - and Watchstone will happily hand over a billion dollars that they don't have without a fight... - good luck with all that!