Some on this board lend far too much credibility to the idea that the debt owed by the parent company to the trust creates a significant claim over the overall assets of the group.
The trust debt is simply a claim against the parent company.
Unlike the bank and hedge fund claims in the Alinta Finance group it is not secured against income producing assets in the Alinta Finance group (where th vast bulk of the assets are).
The only value in the parent is some cash and the equity in Redbank.
There is a separate argument that equity has some nuisance value because if it votes down the proposal then a voluntary administration could cause creditors more pain than the 10 cents per share we are getting.
But let's put these fanciful notions about obligations owed to us by way of the trust debt to rest.
AEJ Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
