take over!!!, page-10

here's a few things to consider

why would NAB take 74cin $---quite simply it considers it might be stuck with the debt for a while.It obviously hung on hoping a takeover/recap/repayments would occur before June year end(plus sales and paydown of debt on a prorata basis),so its ALINTA debt could be re-rated.It hasn't so the BANK HAS ITS OWN MONEY TIED UP IN THIS LOAN,instead of its depositors,which stops it borrowing multiples of against its equity,thus affectig its capital ratio.I.e. reducs the banks ability to increase borrowing.Hedge funds and investment trusts don't have this statutory problem

Its got nothing to do with the viability of the business,just as these writedowns haven't.WE WILL STILL BE WITHIN OUR COVERNENTED LIMITS WITH LENDERS the management says and it will have no material affect other than alter the stated gearing ratio.(i consider that material,but then these writedowns will become write-ups in a year or so and improve that ratio for whoever owns those assets or this company)

GPG could end up with around 10% of a restructured(20% equity swop) dividend paying company under a recap.either way they win.

There's no way i'd take 10c a share,i'd rather see it liquidated(which would be catastrophic for hedge funds) than let someone get it for nothing.I have great faith in GPG not wanting that,nor settling for a measly 10% return(at 10c a share) while they have been sitting in the driving seat with effective shareholder control for 2 years.

currently looking to add more to throw in the pot

DYOR-or loose your own money