“I think it’s a dreadfully run company, but they also have a bit of a too-big-to-fail aspect,” he said. “Because it’s a flagship Chinese company, I do expect some sort of bailout.”
will know soon enough, but bonds aren't likely going to repay in full. And the company can be in default and still be in operations.
A bailout for the bonds maybe. No reason to bail out the equity as well.
What I don't understand is why they can't pay this debt with a new issuance of bonds and push it out to further date. Many companies do this. Is that an option?
My concern is the timing of this shuffle on the board...not sure why they did it.
The bonds are unsecured, so that's not clear either.