It has been interesting to read the various opinions...It seems...

It has been interesting to read the various opinions...

It seems to me that the company itself does not have the cash at present to buy out hybrids regardless of the value such an exercise will add to PPX's asset backing, as it needs all its cash for its loss-making operations and to keep the banks at bay. But, obviously, a PE predator can pursue such a strategy with new equity after it has been successful in getting control of the company.

But whilst the current indicative offer from PE is interesting, it is too low-ball to make sense for most PPX and PXUPA holders. IMO most holders of PPX and PXU (ie. excluding those who have bought shares at low prices relatively recently) would be sitting on heavy losses, some probably having lost as much as 80-90% of the value of their holdings. So they may wish to hang on to their positions for as long as it would take (unless a decent PE offer comes along), as they are unlikely now to worry much about about losing the remaining 10-20%, and may instead choose to give the company a chance (either under current management or new management) to turn its business around no matter how hopeless this looks to some.

So unless the management and Board indicate that they are incapable of turning this business around (which would become clear from the nature of their response to the current tentative PE offers being considered), or the company seriously breeches any of the banks' covenants that management cannot satisfactorily resolve, I see the status quo remaining for quite a while yet.

IMO any serious compromise between majority of PPX & PXU holders would only occur if any of the above scenarios eventuates, or PE decides to come up with a more decent offer!