(05-02-2014, 10:05 PM)GPD Wrote: (05-02-2014, 09:57 PM)felixleong Wrote: in the event of a default
I kinda think that
the winners are
1) management
2) the bond holders
Likely Singapore shareholders are gonna get wiped out... the evils of s-chips
Why bondholders as well?
my gut feel tells me that management and SHK are out to take advantage of shareholders.
SHK very shrewd and experienced, I don't think they fell for the trap. But instead they could be involved in laying this "trap"
In an event of default or liquidation, as bondholders SHK will have priority over common stock holders. So its likely that they recover all their $$, maybe plus something extra? hm....
defaulting and then liquidating the company would be great for the corrupted management, a perfect exit plan.
Better to scoop everything now and leave than keep riding the tiger. They know they can't cook their books forever, it must end someway or another.
If they wanted to continue riding the tiger, they would had suck more out of shareholders.. do rights issue blah blah blah (give me $$ give me $$)
Anyway the above analysis is just my imagination/speculation. (I may likely to be very wrong)