Ann: Seven Network and WesTrac - Scheme Implement, page-10

re: Ann: Seven Network and WesTrac - Scheme I... Aside from the repayment of a debt facility you've ignored the other debt that will be assumed as part of this deal and the ongoing debt that is usually used in a for hire business.

SEVPC was meaningfully senior to all stakeholders in SEV as the cash (100c on the dollar!) would have paid of liabilities many times over.

After the aquisition you are going to have assets like cranes which are on the balance sheet at 100c on the dollar (less depreciation) but which would fetch 20c in a liquidation. Versus cash which is always worth 100c.

The huge margin of safety in SEVPC will be gone. They are going to be enormously subordinated. I'm suprised they haven't fallen more.