PP23Red,They may be in a good position in negotiating the...

PP23Red,

They may be in a good position in negotiating the restructuring. You neve know. Hence, not forced to sell assets at depressed prices now.

Anyway, they are not in breach of covenants as at 31 Dec 2008.
They may be in breach as at 30 June 2009, and may have some principal repayment due prior to that. Hence the negotiation for debt restructuring.

Its leverage is no where near CNP (the biggest mistake CNP made was borrow short term debt to finance long term assets, hoping to rollover short-term debt when they fall due, which did not happen.)

It depends on what is in the facility agreement for potential breach of covenants, and the rights and obligations of VPG and the lenders thereon.

Hence, at this stage, outsiders like us would not know.

What I can say is that at this stage, the banks are most probably not legally entitled to call back loans under the facility agreement.