timhb / todha, page-23

I cannot see the benefit for Bondholders. They are asking bondholders to waive the covenants for 6 months and effectively roll-up interest. The document keeps stressing that the capital plus interest will be due next year. But the capital is unlikely to be repaid in full as the assets are overvalued (their comments). Strange this now by the same team that had the properties valued in February 2009. at the time I couldnt understand how you could value the property on the leases if Timbercorp was in trouble. In addition Timbercorp administrator wants moratoriums and wont pay rentals etc etc seems like first loss is best loss.

The annuity holders are also voting but they are unsecured and in fact I think it would be best to let the bond trustee to put a receiver in at least the bondholders get someone looking after them.

Anyone else have thoughts I am uncomfortable to allow Align to continue getting fees and rolling forward on covenants that are now waived etc.

Disclaimer: I take no liability for the accuracy of my post. Do your own research prior to making any investment decision.