Lets said that we are facing a debt to equity swap:
So what would be the possible outcome:
At current price of 5 cents:
We need to issues 500 Millions of new shares to swap $50 millions parcel of debt (which is just chicken feed compare to our debts). I think we need at least 10 billions of new shares to swap $500 Millions of our debt at current price. It is just too delusive.
My guess is the management are doing some debt to equity swap base on a higher prices. Think of BBIL deal at 18 cent s a share. After new share issues, then Share consolidation could be an option.
What do you think?
AEJ Price at posting:
5.1¢ Sentiment: None Disclosure: Held
