I think REU should come out ok if four seasons health care pay...

I think REU should come out ok if four seasons health care pay back their 52 million pound debt. It is unlikely that the British government will let a nursing home company go into administration and kick out 16,000 elderly. That would cause an uproar.

RAT on the other hand, hold too much CRE that are now worthless. I did a rough calculation with US commercial properties loosing 15% value in the last 12 months. All if not ¾ of RAT CRE have been wiped out since the loan are mostly lower tranches, There’s talk of a commercial realty blood bath this year in the US. Also, the last purchase was a bunch of building lease to the US government, these was purchase in early 2007 which was at the height of the boom. Just before the burst in July 2007. Most of these properties would have lost at least 20%. The only thing going for it is that its lease by the government and are not likely to stop the lease.

If bank ask for their money back now, RAT will most likely have negative equity. Hence, the 1.4 cents per share price.