If it is wound up then there will be zero value for PXUPA holders. They rank behind unsecured creditors. Once the liabilities for redundancies and leases (hundreds of millions) kick in PXUPA will get nothing. Unsecured creditors will be lucky to get a return.
The good news is, if covenants are breached, this doesn't automatically mean administration. Normally, companies have a certain amount of time to pay down the debt/raise capital/sell businesses before the debt needs to be repaid. Depends on the terms though - might be at the stage that it is repayable immediately. Generally not though. Makes more sense to give the company time for those other options than for the banks to crystallise value in receivership and/or administration.
SRS Price at posting:
1.7¢ Sentiment: None Disclosure: Not Held
