Blue Star bondholders hopping mad at raw deal
Directors are insisting their refinancing proposal is bondholders only hope of getting at least some of their money back, even though their own documents show that is a long shot.
Michael Warrington at Chris Lee & Partners describes the deal as a violation of the well-established principle that shareholders get to eat last behind all debtors.
Liam Mason, the FMA's general counsel, says the Blue Star's prospectus has to contain information investors need to make an informed decision, but "at this stage, we have not seen evidence that the Blue Star prospectus is misleading."
Mason acknowledges the FMA has received "complaints from investors concerned that the offer from Blue Star is not in their best interests.
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