NTA can have little to do with a takeover price. RPF (Redcape) had an NTA of around 27c, and has a takeover price of 2.6c. Yes, 1/10 of NTA. It breached covenants. In a nut shell, RPF had an offer of 8c, and had no breach of covenants. Then, through a series of manoeuvres, covenants were breached, the company had previously rejected 8c, and a new offer of 2.6c was made. It was an ugly story, and everyone lost, including me. Oh, the hedge funds/owners of senior debt, didn't lose- they'll rake in a fortune.
My point in the above is, NTA is not necessarily what people will get back. If there is a covenant problem, it may be that the cost of debt becomes so high- due to a covenant breach- that a company caves under it. In the case of RPF, hedge funds bought out senior debt, and junior debtors (ANZ and Bank of Scotland) sold their debt to the seniors for 10c in the dollar (or something like that- it was complex). The senior lenders had complete control of Redcape and could have tipped them into administration.
I would think the next step is to see if PPX has breached covenants. Given the company ought to have known the situation by the end of 2011, they should advise soon. If PPX has a breach, I imagine that a whole new set of issues will arise.
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