The article says that the named hedge funds could be considering funding one of the 3 proposals to turn around Redcape.
Apparently, RPF's lenders met on Thursday to discuss granting more time to consider all the offers. RPF, which owns 71 pubs and 12 bottle shops, has asked that senior secure lenders waive or amend the covenant and refrain from demanding repayment on the coy's senior debts.
A $275m debt payment is due today. A source said it is now likely that the senior lenders will grant more time. The company said yesterday in an ANN to the ASX that the senior owners of debt (Golmand Sachs et al) might not provide consent. GS et al also own debt in NLG, leading some to believe that the aim is to recapitlaise RPF and merge it with NLG.
The Soul Patt's proposal of 10c per security, could be funded by Och Ziff. The high costs of capital mean that there is no concrete offer yet.
If none of the 3 proposals complete, Laundy Group would be open to revisiting the sale of 20 pubs. ____________
Those tow article I posted ave been writtine for today's AFR. It's created a bit of buying pressure. About time, too- our SP is now looking slightly less distressed.
RPF Price at posting:
6.0¢ Sentiment: None Disclosure: Held
