Haka,I totally agree with you. I have around 10 years corporate...

Haka,

I totally agree with you.

I have around 10 years corporate lending experience both here and overseas. I know that VA is not going to happen for VPG.

The context of me doing the calculation is to alleviate the fear of those nervous ones who are freaked out into selling at very low price.

As long as LVR is comfortable, and interests are paid (this is especially so for property sector), banks will just snare up the opportunity to charge higher interest.

Breach of LVR and ICR will only give them good excuse to charge higher margin. (I mean LVR and ICR are still at comfortable levels for banks, though breached)

Look at Mirac, surely it is in a better positon than VPG, it was still charged at least 2% more for refinancing (per its announcement today. )

As such, I am fairly optimistic about the success of refinancing/debt restructuring.

The only thing is probably that banks may force VPG to accept the meagre debt to equity offer from Scarborough, which will dilute shareholders' interest.