"My guess is the Korda Mentha took shares instead of fees because the company had no money. If they were paid with money the debts would have been paid out of order"
Preferential payment of debts if a company is insolvent has consequences on the directors. I believe they were paid in shares as a legal loophole to avoid preferential payment rules.
This would give the best result for shareholders the directors and K&M could be paid for their work.
Who's to say that there isn't some sale agreement already in place between the bank and KM for the sale of its shares at a fixed price.
In my view KM acquiring shares is little more than an accounting trick to help all parties.
MAE Price at posting:
0.6¢ Sentiment: Sell Disclosure: Not Held
