Yep, finch- rennis is correct- it was the Trust that put that...

Yep, finch- rennis is correct- it was the Trust that put that value on PXUPA, and the PXUPA activists don't like it.

rennis, I have to agree with austted and disagree with you re Paperlinx being seen as a bad credit risk due to not paying distributions on PXUPA: indeed, I think banks would see it as a positive- less money for the company to pay out, so they can pay back *other* debt more.

I know Graham may disagree, but there is no obligation on Paperlinx to pay the distributions- that's why they're at $18 and why ELDPA is at around $32- that's another one that isn't paid distributions. I bet banks like Elders, too, for that. As PXUPA is all about risk, the payoff seems to be that it has more rights in the event of Paperlinx falling down. ASIC just warned people about hybrids- go figure. Maybe one day, the PXUPA's and the ELDPA's of the world will cease to exist, and ASIC will intervene so that income investors can't get into these situations.

Think of PXUPA's as an instrument of charity: Paperlinx can choose to drop in some coins or say, "not today, sorry". Whether one weants to see that as a moral issue or a regulatory one probably depends on if one holds. (Like the metaphor of PXUPA as charity, Graham? I thought you might! :P)

Nice to see PXUPA rise today. Let's hope the SUX people can force the Trust to be advocates in what may be an upcoming war.