Originally Posted by
PoppaJo
Mick, do PAG have an exit clause in all of this? One without significant financial penalty to itself?
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PAG's walk-away is to simply elect to redeem the issued notes at Face Value instead of converting them. We've only ever seen a synopsis of the actual funding agreement between PAG and Rex, but from that it looks like PAG would need to wait until the Maturity Date (five years following the First Drawdown Date) to redeem the notes. That would be March 2026, unless either party exercised their right to extend the Maturity Date by one year. Redemption would see PAG get their money back plus the (below market) 4 percent annual interest that they have been collecting. You could argue that PAG would have also received an education on the vagaries and vicissitudes of the Australian commercial aviation sector; assign your own value to that.