still breathing for now.., page-4

I had actually overlooked the fact bondholders were involved in the RJT debt profile. That is, as has been shown, a bad thing. If there is anyone more ruthless and destructive than banks it is faceless bondholders with no reputations to tarnish who will bring down an entire company if they think their dollar is worth more elsewhere. LYC is an example of how bondholders can simply reneg on a deal and pull the rug from an entire company without fear or favour. Just a few bondholders obstinance may be enough to unravel the thing and have it go into administration and fire sale mode. Unfortunately for RJT they have so much surplus equity that creditors know enough value resides to pay them back even in a savage fire sale. Hopefully the thought of recievers taking years to sell down and return their funds without picking up the hefty interest margins and fee gouging they are now grazing on may give them cause to pause.

Still seems almost ludicrous that 40% equity and 60% debt is a death sentence at the hands or lenders who lent the money at similar ratios in the first place. A reminder of how our grandfathers developed a healthy fear of debt and bankers after the Great Depression after being similarly worked over. As the saying goes "a banker is someone who gladly lends you his umbrella when its sunny but then demands it back when it rains".

goodluck