Part of the deal when the loans were negotiated earlier this year was the conversion of loans into term debt, effectively making the loans easily transferable. In other words lenders can sell all or part of their pre March loans to whoever, without the need to consult fellow lenders or the borrower.
Heavy discounts on corporate bonds / loans are not unusual. For example some of Fortescue's debt was selling at 50c-60c in the dollar not that long ago.
Obviously selling debt at 38c in the dollar is not a vote of confidence however we can only speculate.
In the same sense you could sell your equity for 20c in the dollar without having to explain it to anyone.
Have a happy night!
SGH Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
