I wish I’m not becoming too optimist or idiot, but my simple way...

I wish I’m not becoming too optimist or idiot, but my simple way of seeing the situation is as it follows: if the banks send Allco to administration, they would need to appoint their receivers and agree on a plan to sell the assets, even when there is a fire sale they would still need to do it in an organized way. Therefore, they would be getting the first dollars back probably in 6 months time or more and there is no guarantee that they will get everything back so their provisions for losses might need to be raised accordantly. Now, if they grant the extension, maybe they can get a better deal in the long term with a restructured debt. I believe Allco might be using this argument, obviously exposed in a much better and technical way than this small post.

Am I too optimist or plain stupid????

PS I’m not expecting to get upset with those who believe that I’m just plain stupid :)