I sent an email to Vlad (name on the Coastal Announcement) Haven't got an answer back yet (he is in NY by the way)
I did some research on Coastal and they target returns around the 20 to 35%. In AEJ's case they have a achieved the 35%. They lower their risk by continuing to buy and force a yes vote (which they are also know for) If they get to 19.99% they then have the ability to negotiate directly with the Debtholders for a better offer.
The question realy is are they happy with tehir current return or are they willing to press for more?
They would be sitting there wandreing what GPG will do.
From what I can tell Coastal have not gone as high as 9.9c. 9.8c was their highest buy.
At 9.8c buying today returns you 15.8% on the 29th March. Buying at 9.8c on the 28th Feb will return 25.7%. The time value increases as we get closer to the payment date
All in all I think it's going to be an interesting meeting. I for one will be there and Voting NO!
AEJ Price at posting:
9.7¢ Sentiment: Hold Disclosure: Held
