" Who bought those debts will be very interesting."
Probably one of the suitors with a complete takeover in mind. Has anyone considered that !
At the suitors behest, first negotiate a debt reduction with the banks, then command the T/O box seat, over and above that of any opposition. Leverage, they call it.
Since there is quite a range of bidders lined up for a variety of important assets, simply neutralise them in the first move.
No matter what the rationale, it seems evident that selling off assets piecemeal to pay debt would leave a vastly smaller company which is not worth much to anyone. Whereas an orderly take over does make sense.
The timing is good too, an end of financial year which means the balance sheet can reflect whatever is best for the opening days of the new year.
AEJ Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
