sorry kacy.
using your figures, lets do an envelope analysis.
1.135-0.485=0.65 ($Au 650m debt)
This debt will need interest servicing, dont know the %rate, but the payment for the loan is in 2010. So ABS also has to find the full amount by 2010.
The 600m bonds, sure it doesn't have to paid back now, but you'll have to do it eventually. The alternative is you let is expire and it becomes "explosive", the bonds convert to formula of (Value of bond plus interest)/SP=number of shares converted. you can potentially lose alot of SP value afterwards through massive share dilution.
altogether, 650m debt+ 600m bonds = 1.25B liabilities. This doesn't look so well for equity to debt ratio.
The debt servicing will weigh heavily on profit, by the time the full payment is due, not sure if ABS can find the money to repay, and even more unsure if they can refinance it. If ABS keep on selling their assets at "firesale" prices, the net asset backing the shares will be dramatically diminished. The american deal already has realised losses, you do realise these losses will be carried into the profit/loss of any the remaining asset sale.
ABS
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