Is there anything stopping Alinta using Neighbourhood energy for example from using any spare income(cash) to buy alinta debt(at a discount)on the secondary market.Each subsidiary can and some quite often do purchase debt in their owners(both public and privately placed)if they can get it at a discount to face.(they can then book a profit when its cashed in) (Providing in Alinta's case these are not funds which are caught up in the cash sweep which is in place to reduce alinta debt at full value on a pro-rata basis). I do not know if funds(profits) from redfern or neighbourhood energy are outside the sweep agreement or not.I would hope they were.Redfern pays its debt down by $10m/yr and makes money to boot.You can always do things like take a 2nd loan soley on redferns profit or your investment in neighbourhood energy and utilise that.Although for how much your guess would be as good as mine. No doubt such options have been considered.
merry xmas
AEJ Price at posting:
5.5¢ Sentiment: None Disclosure: Held
