Our vote for the fate of alinta is coming. So we must know our rights.
We are not just simple shareholder for alinta. But we are also creditors to alinta.
Our only assets is the $450 milions dollars of debt which our trust loan to alinta finance since BBP listing at the ASX. In simple terms, alinta owe us $450 milions documented debt (original values was about $1.1 billion). So regardless of whatever the outcome, it can be delist or administration. We (the shareholders) will be the main unsecure creditor (with the removal of BBIL last year) and have rights to salvage any values left after lenders and demand return for our $450 milions of debts.
Base from Alintas 2010 accounts, our net assets base on market value after senior debts are $450 milions and plus $108 milions of cash. We would expect reasonable leftover net market values around $150 milions to $200 milions which is around $15 cents to $20 cents return per share.
In any takeover or recap scenarios, suitors will need to take that into accounts as well. One of highly possible outcome is the suitors will offer something in return and wipe our $450 millions dollars of loan in big discount might be 50% . Think of us like the BBIL and alinta/suitors willing to do a deal which has win-win outcome for us and the suitors. For people who bought into BBP since 2007 might be big loss for them. But for GPG and us whose bought below 10 cents. it is not a bad deal after all.
AEJ Price at posting:
5.0¢ Sentiment: None Disclosure: Held
