TIM 0.00% 4.4¢ timbercorp limited

tim and credit crisis, page-14

  1. 2ic
    1,317 Posts.
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    Non-convertible debt is a liability because it cannot be converted to shraes but must be paid back with cash. A non-convertible type of debt would include a company bond, which is repaid at maturity.


    convertible debt (eg convertible hybrid securities) is Equity on the balance sheet because there is no requirement to pay back with cash. Thus the term "hybrid" meaning part debt part equity.


    cheers
 
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Currently unlisted public company.

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