why are we cheaper than eldpa, page-3

Yes, the Board can leave us 'dangling'. But for the company to move forward it needs to deal with the PXUPA. No dividend can be paid on the ordinaries until two PXUPA distributions are made. Having gone up a couple of ladders the Board has gone down a long snake and is back where it started. It could have been in a position to pay a dividend having made the two PXUPA payments but now has to start again.

Keeping the PXUPA in perpetual distribution drought means there will never be a dividend paid on the ordinaries. Who would ever remain in such a company? So they have to deal with the SPS in one way or other. Buying them back on market (it's not subject to the buy back rules affecting ordinaries) at $25 is effectively retiring debt at 25c/$. But this will only go so far: the market will shoot up to say $35 and they won't get a huge volume. They need to take out all just not some, of the PXUPA. To do this they should propose a scheme. 75% present and voting required to get it through (that is not the same as 75% of the SPS by face value, just 75% of those who bother to vote). I can see holders voting to have them redeemed at say $50 (but certainly not $30).

This is just such a simple solution--and despite what their highly paid advisors will make out, the solutions are pretty straight forward and limited in number--you would have thought the Board would have worked it out by now.

But nothing surprises me with the PPX Board.

However, if the business recovers, then the distributions will recommence. But note that they said there will be no distributions until things get better and there is no sign of that happening at the moment.


I'd like to be more confident about PPX, but really, all the excuses now wear very thin and another 'review' is not what we wanted to hear. We wanted a proposal and got nothing.

But who knows....hope springs eternal.

Lizard
(and lizards run hot and cold so should not be relied upon)