results analysis - diversified, page-6

The banks PPX deal with are primarily in the zone where PPX is suffering its biggest losses .

ING are very strong in Netherlands , Germany etc so would be under no illusion as to what PPX face. I suspect in order to get a greater headroom and longer finance terms the banks would have wanted a strong undertaking that PPX would heavily reduce expenses and waste of shareholders funds on the all so many items that Graham cc highlighted under Marchant's Head office management .

When the half year result came out the new board had only been in the role operationally a very short period , yet achieved this survival milestone

I suspect the new management team and part of the board would have had to meet the banks personally and all parties at the meetings would have needed to show awareness of just how difficult trading conditions are in those countries and our board would needed to have made an an undertaking the new management were going to cut costs and return to profit or sell out of the countries it loses money in quickly

To do this , as explained at the AGM , they needed head room , and needed any refinancing to 2014 from ING and other banks, this would have needed to allow for the costs of the redundancies in the half to inflate short term losses on the basis the operational costs are curbed longer term

This will become evident in this halves result which really should have massive extraordinary losses attributable to closing offices and making redundancy payments

I am led to believe up to 500 jobs were initially forecast as needing to be made redundant , however it is now more likely to actually see this extended towards 1000 job cuts redundant in the 18 months post Boon and Marchant .

In my opinion all this is good and at these levels makes the stock worth considering now PPX it is trading well below 10c again ,and the PXUPA at $7

Still of the belief that an offer of 125 PPX for each PXUPA is in everyone's best interests .

Over the last 18 months the shares and hybrids seem to have stayed in a range around 100 -125 to 1 .

Hybrid holders are not the only loser here , If hybrid holders were offered 100 PPX for each 1 hybrid at the the date of their issue I suspect they would of stampeded to take the offer .

In my view the days of referring to the $100 face value or the old PPX share price at $3 are gone

It is now time to make the best out of the current situation and one thing that can be done is to fix the balance sheet chaos with the hybrids staying seperated from the ordinary shares