Personally, can't see a wind up happening. IMO, if interest...

Personally, can't see a wind up happening. IMO, if interest cover is ok, then banks will keep on extending current credit. Yes, they will take their pound of flesh via higher interest margins, however ultimately, banks make money from lending, not equity positions, so they will very reluctantly engage in debt equity swaps, although they will encourage companies down that line (eg Macabe) if it helps their position. Thus, we do have a current dilution threat.

My view is that VPG will be a great long term hold, but it will be a roller coaster ride. I wouldn't be surprised if it takes a couple of years of no dividends and sales before we see a full stabilisation of the stock, a return to dividends, and resultant institutional support.

I like the fact that VPG has many smaller properties, thus a lot more prospective buyers at the sub $20m level than for large properties. The AFR had an article on Thursday about wealthy individuals re-entering into the property market...plenty of cash on the side lines IMO. Thus, if they are forced to sell, then values likely to hold up better at sub $20m level.

Anyway, just my opinions and DYOR.