LZA said:"if they got rid of the PXU it would likely make them a...

LZA said:

"if they got rid of the PXU it would likely make them a t/o target as debt reduced, why would they want that ?
better to wait for a t/o offer l would suggest."

And that would be the exact reason for a partial buyout of pxupa's, LZA. Scenario: imagine that debt distressed dealers/private equity consortiums are tyre-kicking PPX, but see some ugly hybrids sitting around, that they know would have to be repaid at face value of $100 in a normal takeover. They may want PPX to wind down the expense of these- both for current distribution payments and for future reset. There is no way PPX couldn't find a penny or two to remove this potentially expensive instrument.

I've been checking out TPAPA, one of the other hybrids that was always considered distressed. It's had a yearly range of $58-$77, and currently sits at $68, since the step-up decision. Checking out the news of TPI, the parent, TPI is in a terrible way- much the same as PPX. Interestingly, their share graph on HC looks much the same as PPX's: a severe bottom, and then a brief recent spike (same capital raisers as PPX, perhaps?) PXUPA has had a yearly range of $30-$70, and currently sits at $32.80. TPAPA's have fully franked dividends- that's the only difference I can see.

I guess we're all trying to work out what is going on for PXUPA. Maybe they'll give us franked dividends. :)

If a takeover was to occur down the track for PPX, the shareholders might OK it. Other distressed companies, eg CRE, ISF, VPG, have been willing to accept a premium over their currently distressed prices, and be offered an out, than to just dwindle away to nothing. I suspect NMS and PGA would do the same. I suspect PPX would also do the same, and the fat (PXUPA's) could be trimmed early.

It's my hope anyway. Whilst these *should* be trading higher, they're not, and we know something is going on with the company.