I don't think there's any prospect of dividends actually being paid

I presume the plan is to roll them up into the value of the prefs such that if, or when, he sells, he can attribute value to them.

Whether he obtains any value is another question, of course, but if they don't exist, he definitely can't.

There are other factors too; e.g. tax treatment in the US of interest vs dividends on prefs, UK withholding tax treatment, and also financial fair play type rules or whatever.

I'm not sure the rate is overblown; would a financial institution even give us an unsecured loan of that amount? I'm not so sure. What were the interest rates on the loans that were secured against parachute payments? I'm too lazy to look it up, but I think they were surprisingly high.

Posted By: SimonOTBC, Oct 9, 11:33:08