putting paperlinx in perspective - 2013, page-5

Austted,

For PXUPA's to adopt, any resolution must passed by "75% or more of votes at a meeting of Holders in accordance with the relevant provisions of the Constitution."

I am not sure where your $30 came from? The PIGS valuation had a range for residual equity value of $44 to $100

Appropriate if any shortfall to PXUPAs' from $100 face value to be made up with PPX. I have done some sums (similar to below) and no change in PPX SP (10c) if PXUPAs paid $60 and $40 converted to PPX.

Even so, perhaps PPX could propose $60 per PXUPA and say $25 for conversion to PPX.

That way PPX dilution only around 55% and the actual SP of around 13 c would result from ~ $117 mill (ie 600 mill PPX @ 10c + 2.85 mill PXUPA x $40 ) / ( 600 mill PPX + 2.85 x$25/$0.10 PXUPA conversion.)

NOTE: Still means PXUPA holders take a $15 haircut plus all the foregone distributions which probably total $25+ and whilst gone forever, can fairly be placed on the table for moral consideration in terms of "something foregone" as many entered PXUPA for the dividends.

Paying $171 mill to retire $285 mill works for me every day but issue is where does PPX get $171 mill to pay PXUPAs so it can eliminate $285 million of PXUPA debt?

Believe something like this strategy will need to be played out at some stage. The further PPX prices rise then the closer to $100 I expect PXUPA holders will require.