>I am not sure if you saw the Centro and Becton share swaps for note holders and funds holders much worse capitlized companies survive , they actually had negative net asset backing , if PPX offered Pxupa holders a swap for equity , what value is considred reasonable to price the PPX , and then the pxupa to calculate a share offer . In my opinion 100 for 1 would favour initially the PPX holders but ultimately PXUPA holders would achive upside as I expect the ppx shares would trade above nab once this debt instrument was removed as a liability by a share swap , ie 27c per share would return a $27.00 price for PXUPA holders
Given the attitude of some of the PXUPA holders I am not sure a reasonable split could be made at present. I agree with boomeronration's analysis that there is no compelling reason for PPX to do a deal with PXUPA holders at present. This remains so provided they have positive equity disregarding the PXUPA obligations which can be put on hold. However they still need to find a way to sustained pfofitability.
SRS Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
