Blue Sky ready to welcome White Knight, page-21

Classic distressed debt deal with first ranking security, high interest rates and a big sting in the tail in the form of convertibility as Pikel has pointed out above. Plus Oaktree are well placed to take over management of the underlying assets should BLA fall over or trigger an event of default so this looks almost like a "no lose" proposition for Oaktree.

The other interesting question is why BLA didn't give it's long-suffering shareholders the chance to re-up for the $50m (or whatever other number is required) rather than hand the farm to Oaktree. Did they think that they wouldn't get support from either their shareholders or an underwriter?

That said, I wonder what the consequence for the business will be if shareholders vote this proposal down at the AGM...