you guys are all wrong. read the announcement carefully. they...

you guys are all wrong. read the announcement carefully.

they still have to pay back the full $78 million, they are simply deferring $67 million of it for 3 years. so valad pays $11m this year and $67m 3 years from now. this is NOT a debt to equity swap.

all this is is an equity raising to the vendors. the vendors will allow valad to defer the majority of the amount provided they get to subscribe to an equity raising. the price of the equity raising, or the size, is yet to be determined. that is why people are jumping ship.

so basically valad has finally admitted to the market it needs to raise capital, and it looks like there will be massive dilution.

selling assets, even at a 20% discount, to pay back the amount fully by september seems like the best thing to do, not a hugely dilutive capital raising. but the valad directors don't care about the conflict of interests.