Hi, I still have a problem with the litigation and the demerger. The court approval to allow the scheme to proceed will require that the scheme is fair to all , shareholders , debt holders and other creditors . This includes ''reasonably forseen creditors'' ? If AMP loses , and we can argue that one either way , but it is a possibility, then a liability arises. Who pays? The potential liability is large , probably too much for each of the separate bits , and even if not , reduces the security of those potential ,reasonably forseen creditors , as well as the debtors in the entity responsible. How they apportion that potential liability is hard , not least because it would force them to put a figure on it [ which they have quite rightly avoided doing up till now ]. Not sure the courts will take , ''I think we will win '' as an answer. So I can see the litigants lawyers throwing a spanner into the scheme demerger , court approval process. If that sort of intervention were to happen , and succeed in delaying things , then forget the own goal , more shooting off both feet and picking off the genitals on the way through.
Which, by the way ,would leave my agenda as road kill , so if there is a flaw in my argument , i will be glad to hear it. cheers
AMP Price at posting:
95.5¢ Sentiment: Hold Disclosure: Held
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