thinking rationally

When I first saw the terms of this agreememnt for the extension of time to pay an UNSECURED debt I was totally p.....ed off I can tell you.

So I started to think - why would a deal like this be negotiated. $1m interest for 3 months?????? Hello - where is this moron coming from.

A charge over ALL the assets of ADY which are considerable given to "Receivers" of Hawkeswood???????? Helloooooooooo? yet again. Hawkswood is done so at best the Receivers can do is to recover what they can.

Why would PT do such a deal?

Desperate times call for desperate measures. Hawkeswood's receivers knew that ADY was between a rock and a hard place due to "timing". ADY has not been paid for it's shipments but they know it is coming. Shougang has not come forward to complete the LOC due no doubt to the current financial global crisis - but then again - who can ever trust the Chinese. They grin a lot - talk about the importance of "face" then shaft everyone in sight just when you think you've got a deal. Why they don't realize how stupid they look I'll never know but anyway........they are in the process of controlling the world so who are we - who have stuffed it up so badly - to argue.

What this deal is is a "thumbscrew job" put on ADY by Hawkeswood and if PT didn't honestly believe he could pull this altogether in the current circumstances he wouldn't have put the WHOLE of ADY on the line for an unsecured debt.

It was better to agree to that than to have a Statutory Notice served which would only give 21 days.

I've had to think this through a bit and I hope I have got it right.

I don't think he would put EVERYTHING on the line and place himself in such a vulnerable position regarding the potential for a class action if he didn't have a positive belief he could pull it all together.

It seems to me as if it was a tough deal all round. ADY would want to extend the time knowing it had the potential to pay but Hawkeswood held all the cards knowing it could serve the Statutory Notice and force ADY into liquidation.

To do that would ensure that Hawkeswood would get little and would have to wait years to get it. This way Hawkeswood ensures that it gets an extra $1m into its coffers to pay to its creditors plus the whole debt.

This is much better than a few cents in the $ after years of stuffing around which Receivers are notorious for - since they have nothing to lose since they are the first in line to get paid.

I would be interested to see what others have to say.

I think comments should be restricted to those who hold ADY. They are the interested parties.

If you are sitting on the side wanting to gloat then just remember how you will feel next time you are in the position of being a "holder" when you wish you were a "fence sitter" because it happens to us all at some time or another.

My exposure to ADY is extremely limited - only a few K really and of no real consequence but I feel for those who have substantial exposure based on the promises of management and expectation.