Friday, 19 November 2010

Punch Bond Holders Debt for Equity Swap

In a recent article in the MA, Unison boss called for bond holders in Punch to consider a debt for equity swap much as MGM studios have recently done. The suggestion was called 'naieve and ill informed by city analysts,

I think.....

I dont think the naievete lies soley with the Union boss on this one.

Anyone with significant exposure to a retail property company whose sites are at best 'secondary' high street; have zero branded operators as tenants; whose own tenant base is frankly low on retail marketing expertise; whose traditional core business is declining at a frightening rate; and again whose tenants lack expertise in the 'new business model' ( that's running restaurants or entertainment venue bars); I don't want to go but you get the idea......; those bond holders may well be no worse off with equity than debt, infact its probably largely academic in the long run.

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