Y is running at a loss and has debts, overall borrowing will be increased. Costs of deal and new listings combined with shady types like Blom will only make credit rating of ETW lower. Currently ETWG notes are paying interest, new notes from Y could quickly fall into default. where would they get income to pay this interest ? Again, Y has no credibility, no real assets or income. all it is offering is more debt and dilution of ETW shareholders. If ETW accept it will only be due to proding by ANZ. the offer of an extra 10 mil does not change the situation, l hope it is rejected. The idea of a restructure; stop paying interest to the notes and issue new scrip to reduce ANZ debt is the best way out longer term, this is just an opportunistic offer. Anyway market half hearted about it, interest is diminishing.
ETW Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
