alinta restructure, page-4

here's a fictional scenario

xxxx(hereafter called 4X was sitting in the club and his mates say(competitors),what big deal, have you got on at the moment.Well 4X hasn't done much lately because,well you know things aren't great.But he knows whatever he says will get reported,because one of these gents snorts with a reporter.

Well i'm goin to roll over ALINTA in aussie and walk away with a billion or so.Great says joe(who talks to him later and flogs him some debt at 85c in the dollar(that he picked up for 65 a coupla months ago as an interst play)

Baited-well how you going to do that.
well they won't be able to meet that $250m repayment schedule,will they.that'l make them in default and i can put the screws on.

Joes mate george from Kraut bank hears this and thinks-cripes i'd better cash in and flogs his debt for 83c

Before long 4X thinks he's on a roll and heads of to the legal dept to set things in motion.

Dry old Mr Goldbein reads the debt agreements and says,do you really want to keep this debt for another two years,

WHAT says 4X

well they're not in default on their"within 15% of profit projections"

What about the $250m they have to pay back by march 2011.

Goldbein laughs"it justs says if they do,their interest rate won't go up 1%"

4X says crap,i know "lets offer to recapitalise debt for equity say 20% as we're the only debtors.

Goldstein laughs again"Shareholders also have debt of $420m owed as well,so that'll have to be accounted for"

GPG owns 20% and the've gone to sleep and said No

4X says "where does that leave me"

Goldstein laughs and says"stuck until the term of that debt expires,or they default.

4X says cripes i need a drink.Goldstein reminds him that's how he got into trouble,suggests he find someone to offload to.

Meanwhile the newspaper reports 4X's great play and we get to wonder who's next.