Forum Archive Index - November 2000

[richard hermans <r.m.hermans@xtra.co.nz>]

Thankyou Malcolm  much more positive   Margie

> Malcolm Eves wrote:
> 
> There has been a few questions about what to do regarding taking up
> the FFS rts. and concern about CITIC.
> For those who had nil exposure to FFS before the restructure
> announcement the "blood on the floor" represents a great opportunity
> to buy assets at undervalued prices. Also for those who feel like it
> is their blood on the floor it would be better to take up the rts. and
> not let them lapse so as you maintain your position in a company that
> will reappear as a different entity to the one that required rescue.
> With debt lowered to less than 25% after recapitalisation there is a
> different future for the company. You have to see through that.
> Another issue is the misinformation about the claim by CITIC. The
> claim by CITIC is in the name of the partnership (CNIFP) and not CITIC
> so any claim by CITIC reduces the magnitude of the claim by 50% as 50%
> of the claim is to the benefit of FFS. Interestingly Dr Dean said on
> Friday that he believed CITIC would make an 11th hour bid to inject
> further capital into CNIFP which IF he is right will be beneficial to
> FFS. Every dollar that is injected into CNIFP is adding value to FFS
> so it is important not to lose sight of the potential recovery you
> could experience in the future with a recapitalised company. To dilute
> your recovery experience by letting the rts. lapse would not be a good
> idea. I think the future will bring a lot higher price so don't water
> it down.
> Not a perfect dissitation but may be helpful to some.


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