Depending on the price of the share for the debt/equity swap i reckon we would get more back by selling everything at a 15% discount or something as i m sure all existing share holders would get more than just 20c per share. if they did a debt/equity swap at 20c, how may freakin shares would they have to issue to cover billions of dollars of debt given the whole company has a current market value of $186 million? i reckon what they should try and negotiate is a 12 month debt extention at a small interest premium and flog EVERYTHING OFF at a 10 - 15% discount, pay off the debts and distribute the rest that would be the best out come for current share holders. But weather the banks are willing will be another matter, i would be willing to bet my last pair of used underwear that if the banks are KEEN on a debt/equity swap they will end up getting 90% of the value of all the current assets and by then our measly holdings will really be worth about 20c.
frustrated MR Griffin.
CNP Price at posting:
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