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Stabilo, there are $600M of these types bonds spread across Aust and NZ. With credit rating downgrades the interest rate goes up. For easy maths, lets say we get to 10%. That is $60M a year in interest. I think corporate banks, if they are owed money and are worried about getting it, will block this interest at some point.


IF (and this is speculation now, but still worth a discussion) the bondholders are called to the table to negotiate with the company on this, they would be wise not to try and screw the company too hard as you will effectively end up screwing yourselves in the process.

I would rather take some equity and help to eliminate debt to help to keep the company going rather than to reject any advances from the company and watch it go down in flames and get bondholders get nothing.

After all something is better than nothing in this situation.