Exactly - the deal is that the banks take a 50% loss on their loan and get 51% of the company IF they convert their con notes. In exchange, LAF goes off its hedges which were a US$480M mark-to-market backwardation LOSS. So LAF wins, and because the banks got in for about 2x EPS, they get the rest of their debt back as equity growth.
Like I said, a damn good deal. It'll just need to bed down and suffer a reconstruction of the share capital, and get its schnitzel in order, and we'll be back to last week's vale in our porftolios in...well, not no time, but some time.
I don't know about you guys, but I'm going to sop up the LAF SPP when it comes my way. Double or nothing.
LAF
lafayette mining limited
