arbitration begins today, page-3

For Ausgrid it is lose-lose situation.

My view is that if Ausgrid win, Redbank will be insolvent and the contract in dispute would become void. Ausgrid would have to agree on terms with a new owner and no contract would include terms such as Ausgrid is now trying to enforce.

For Redbank it is win-lose.

Win and they survive. Lose and they are dead.

It is hard to imagine 50-50 split being agreed. Either Redbank has the right to pass on the cost of the carbon tax, or it doesn't. In any case I'm not sure that "50" would leave enough cash flow for them to continue meeting the conditions of the Banks Support Agreement.

Good luck Redbank!