Management response to Blue Pacific's argument the terms of PXUPA are in breach:
Well, we can all be glad that issue is sorted. Belligerence seems to be the company motto, which has cost both PPX and PXUPA huge sums of money. Maybe it's time for David Thodey to become CEO and work amicably with stakeholders.
Kristian
Disclosure: own PXUPA
Seems eerily quiet at the moment. Is there a potentially a deal being worked on to sort out the capital structure?
ReplyDeleteHmmm, the situation has been going on for years, so I'm not hopeful in the short term a deal will be worked out. Note that by closing down / selling Europe and North America the potential for PPX shareholders to be left with residual value (i.e. for the company to be worth anything over and above PXUPA) is reduced in the short term. The ANZA business just is not currently worth more than the ~$270m (half of that, at most). So it seems that management may just prefer to ignore the capital structure and get ANZA moving along. It would be nice to be offered a deal (as a PXUPA holder) but equally there is also so much upside if the actual business is turned around and they diversify successfully. However that will take some time, so patience may be required.
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