I think you are part right and part wrong. Obviously management answer to shareholders and not hybrids. Though their are constraints attached to not paying the hybrids interest. But these constraints are offset by the protection the hybrids offer from a hostile takeover.
Their is and will be a reluctance for hybrid holders to accept anything less than face value. Eventually they will probably accept less but it will still be a significant premium to today.
You say : "My thinking is that if nothing happens and the company just continues to try trade out of trouble , the hybrid holders will see more erosion of the price it trades at , and future swap ratios lower ,..."
And you are absolutely correct. And that is a better outcome for PPX and also a better chance to convince PXUPA holders. Basically make them suffer. Crush them until they see no alternative.
The hybrids can go without interest forever and it doesnt even accumulate. Not in PPX interest to address that. The only consequence of not paying is that credibility takes a dive and nobody would ever invest in another share/hybrid issue and you cand pay dividends to PPX, but you can focus on debt reduction and sink every cent into building up NTA.
Crush them until their spirit is broken then offer a olive branch in the form of conversion.
SRS Price at posting:
5.2¢ Sentiment: Hold Disclosure: Held
