NZF Group (NZF and NZF010)

[QOH]

I suspect us noteholders are damned if we do and damned if we don't.
If/when NZF goes under are noteholders ranked equally with shareholders?
I rolled mine over today, (not that my small amount will affect any equations).
At least I can pick up 8% interest while it lasts.

[Enumerate]

If/when NZF goes under are noteholders ranked equally with shareholders?

No, they are subordinated to the senior debt but are senior to the equity holders, in liquidation.

[Xerof]

sorry to be the bearer of bad news QOH, but it's 6%

[winner69]

sorry to be the bearer of bad news QOH, but it's 6%

OOH bought the ones at a discout and said earlier he would be getting the equivalent to 8% .... one way of looking at eh .... but I think he agrees he is being pushed into doing something he doesn't want to do

[QOH]

Yes winner is right I bought them on secondary market and didn't pay face value. Yes I feel it's a lose lose situation whatever I chose.
PS I'm a female not a male.

[Xerof]

Ah, Queen of Hearts, I hadn't seen your earlier comment. Well, a discount is better than a slap on the belly with a wet fish.

[minimoke]

If 1/3rd of Capital Notes become shares, and the share price through the 20 business days to 15 March stays at 14.5c:

1. 10,000 notes plus accrued interest = $10,244 (approx.)
   
2. This buys 74,230 shares at 13.8c which is 95% of 14.5c.
   
3. 6.6m Notes converting will create about 47.8 million new shares bringing the total on issue to about 125m.
   
4. Dividing the current market capitalisation by 125m gives a new nominal price of 8.9c.

Does this make sense?

Thanks
Scott

If I may use your calcs getontoit - we have a bit more market data.

Today the funs and games began with a $300 trade at $0.10. We also know 29.2% have gone for the notes. So lets assume Sp = $0.10 and take up of notes = 33%.
1. $13.3m notes convert
2. this buys 140,000,000 shares at $0.095 (95% of $0.10)
3. Total on issue = 216,666,668
4 Divide the current market cap by 216m gives a new nominal price of $0.035

Please feel free to correct my math. My One eye isn't so good at reading lots of zeros.

[Tony Two Gloves]

I suppose that would be correct but the Liability of $13.3m disppears so their equity will increase by $13.3m. It will be interesting to see if this $13.3m increase in equity equates to $13.3m increase in market cap? If it does the new nominal price will be just under 0.10, we need a couple more trades around the 0.03 mark......

[Xerof]

Yeah, I agree with TTG, you need to assume makt cap is increased by the decrease in Liabilities.

The salient point remains that Director shareholders effectively could lose control of the Company at 10 cents, and 33% uptake, although I guess the spread of new shareholders creates a disparate bunch of folks with no real interest in managing it

[Tony Two Gloves]

Yeah based on Mini's figures above I think the major shareholders would be left with approx 28% of the company. The biggest shareholder Callaghan would drop from 23% to around 8% ouch !!