i do not think it works that way. I think if there is a change in business (as it would if a none energy co bought the shell) the losses are not transferrable. just my limited knowledge but i do know the losses and contracts are VERY valuable to whom ever owns the generating assets. Which in this case would be the banking syndicate who paid 60 (i think) cents in the dollar for the debt. I would be thinking they might be a little nervous that the large holder base might, just might look at the 10 cent offer as toooo little and it could all go up in smoke!
At the end of the day for the banks to offer an additional 30 - 40 million for assurance would mean they only get a (now i am plicking figures out of my .... head) 39.95% return as opposed to a 40% return.
Bankers if you are reading this how comfortable are you sleeping tonight??? cause i am prepared to (in fact i already have) write off the initial investment in BBP/AEJ for the risk of 15 cents!
AEJ Price at posting:
8.6¢ Sentiment: Hold Disclosure: Held
