The issue with letting it collapse is the long administration, secured creditors will want their share, unsecured will take their five cents on a dollar (guess no idea). This takes time, and all those who work directly and indirectly are screwed, not to mention the Qantas monopoly (and Joyce will screw the public imo he just seems like that type of person).
A bailout with a loan that converts into equity would do two things in my mind, a) reduce foreign ownership to ~30% if converted or b) make foreign owners step in and payback such a loan in two-three years time (when they a more likely to have some stability in the industry to do so).
I also think that QAN should get same deal as it despite my opinion of Joyce, government should not be picking winners and lets face it if this thing goes on for longer then 10-12 months Joyce will be the begging money from the Government anyways.
VAH Price at posting:
8.4¢ Sentiment: None Disclosure: Not Held
