LZA, As I have said this is really left field, or Bizaar as you...

LZA,

As I have said this is really left field, or Bizaar as you state.

I suggest that whats happened is that the remaining hard assets are worthless (without the contracts) so the price to purchase these assets are negligible (little recovery for debt holders).There is also a possibility that what the receivers had done was to assign the supply and sales contracts to the debt holders, but they were unable to on sell these contracts, the net result is the debt holders actually got nothing. The only way back was to reinstate the power plant so that it can generate cash, (which it had been doing!)

Net position, is back to where the board had always been, Renegotiate a long term debt structure that allows Redbank to pay down the debt!

The other interesting item to note is that Butler states "The offer is the best way for secured creditors to maximise their return.
This only reinforces my view that the receiver tried to be smart by assigning the contracts and shutting the plant to avoid issues with shareholders. Net result nothing for debt holders, a situation which was worse than getting something from ongoing debt and interest payments.

I believe the offer from AEJ board is a face saving exercise for the receiver and the debt holders and will keep AEJ alive as the support for AEJ will come in the form of a long term debt structure with a possible equity raising down the track to help reduce debt.

I await excitedly to see the details and the outcome!