Not having access to all the docs, I dont think this is plan

They are issuing preference shares (two kinds). Preference shares usually (each will have its own detail) come with some sort of guaranteed payment (like interest on a loan), and get paid ahead of equity, but after senior debt, so are less risky than ordinary shares. Preference shares are also issued with the right (under certain conditions) for them to be converted to ordinary shares.

It looks like the plan is for these preference shares to be converted to ordinary shares before the end of the tax year. So the coupon written into them is pretty irrelevant as they'll be gone. The report also says anyway, Attanasio is not taking interest owed out of the club across any of its loans. So again, suggest no actual payment will be taken anyway.

I think they're doing this as issuing new common stock is more of a ball ache in terms of rules and process. Doing it this way is I think easier for them, and in the context where all relevant parties with a material stake agree, is absolutely fine.

At least this is what I read here. Would need the FD to explain this more clearly. (this does not constitute investment advice.)

Posted By: Under soil heating, Oct 9, 10:07:07