Sign in to follow this  
Followers 0
Bernard L. Madoff

Alinta Energy

8 posts in this topic

THE Future Fund has tens of millions of dollars of funds invested in one of Australia's largest power producers, which is teetering on the brink of collapse.

The Australian has learned one of the funds that invests on behalf of the sovereign wealth fund Boston-based Sankaty Advisers is locked in a bitter stoush with fellow Alinta Energy Group creditors over the terms of a rescue plan and is threatening to derail efforts to save the company.

Alinta is a key player in the national energy market through its ownership of 12 power plants, its supply of electricity and gas to 600,000 West Australian households and its generation of close to 35 per cent of South Australia's electricity needs.

The group, once part of the failed Babcock & Brown empire, is struggling under $2.8 billion in debt and is desperately seeking a solution to its financial woes before a Monday deadline.

Management has warned lenders the company will be forced into voluntary administration if an agreement is not reached by that time to inject fresh funds to repay debts and keep it afloat.

http://www.theaustralian.com.au/national-affairs/future-fund-has-millions-at-risk-with-alinta/story-fn59niix-1225925075828

PS might be an idea for you West Australians to buy some candles.

Share this post


Link to post
Share on other sites

seems like state govs should cease the power producing assets, and tell em the gov will also be charging the company a management fee, for running the power companies eficiently. and then be in there with their hands out with other creditors when the remaining assets are dived up.

sure would nice.

Share this post


Link to post
Share on other sites

On the radio this morning they were saying that we may not be producing enough gas in a few years and so the costs may have to rise for people.

RUN OUT OF GAS IN WA! You must be kidding me. How much of it goes overseas?

Ridiculous.

Share this post


Link to post
Share on other sites

Aww crap. They went into a trading halt 27 seconds after open. <_<

And dang. Up 50+% having apparently reached some kind of work-out. <_< <_<

Share this post


Link to post
Share on other sites

Not too late, Max! As I write, the ask is 8.9c, and the offer for the securities is 10c. There's still a little arbitrage there.

Share this post


Link to post
Share on other sites

Not too late, Max! As I write, the ask is 8.9c, and the offer for the securities is 10c. There's still a little arbitrage there.

Thanks Plonk, I got some at .088. There's a risk there that's worth 14% to me. I'm just bummed that I missed out last week. I had my order on before they opened and everything.

Share this post


Link to post
Share on other sites

I reckon that eon's about as risk-free as they get at this point, Max. You even got in early enough. I think it closed at 9.1c, which *still* leaves arbitrage. It seems people don't want money any more :P

I've been avoiding the broke companies (PGA and AEJ) because their outcomes are (were) vastly uncertain. Not now, though- private equity has come up with the goods. They might do the dsame with PGA too at some point- poor shareholders are down about 90% since trading halt- I hope some good comes out of it.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0