30 members holding our debts, page-5

cheers apples

for the uninitiated out there,hedge funds buy unrated debt that banks want off their books as it affects their capital ratios.i.e. if its not rated they have to use their capital(own money) rather than money borrowed from you.If its rated they can borrow maybe 10 or 100 times that to lend,so when a bond/company gets de rated it puts pressure on the value of the debt.
Its got nothing to do with he ability of the lender to pay,but with the banks desire to be or not to be a lender to you.
Alinta's credit rating is down soley because there is so much debt.
If that changes i.e. we pay some off,or we get some more capital,then thats debt will rise in value as the company gets rated again.
Hence what if i buy at 65c for a $1 worth and earn 12% while i wait for things to improve.That's what some buyers are doing.
#2 Others may see buy $1 for 65c swop say 20c of that for equity still be owed 80c and get a free shareholding.Hedge funds/restructurers will be in like flynn.Probably GPT as well.

these thoughts are likely what is happening in the minds of the debt buyers

But we have to say yes to option #2

AND ONCE AGAIN ALINTA ISN"T BUST only two weeks ago you were told $288m normailised EBITDA is reafirmed