“If you look at the state of the share price, if you just do a rights issue you’re going to have a massive amount of dilution so you need to come up with something a bit more creative,” said Philippe Houchois, equity analyst at Jefferies.
For bondholders, a proposed injection via equity raises some questions.
“Debt holders will want to know if there is a discount on the new equity and what this implies for valuations, should the deal fail given high leverage”, said George Flynn, a managing director at Everest Research.
--With assistance from Siddharth Philip and Charlotte Ryan.
This article was provided by Bloomberg News.