Avanti Communications Group - Re: AVN Stream Log - There is nothing unusual in...

There is nothing unusual in Avanti providing a charge over all assets for the benefit of bondholders and I understand they gave something similar to lending bankers in the past. In the event that Avanti cannot meet their obligations to repay on time (or to refinace in some way) the bondholders have the right to take over everything lock stock and barrel. They would then have the right to sell the failed business to a third party - usually at a knockdown price. In practice however the borrower would more than likely take the initiative to seek refinace or takeover/merger terms well before the sewage hits the fan. Shareholders well understand that in these circumstances their shares are worthless and the only reason to invest as we do is that we believe that the Board can meet its income/profit targets as outlined in press releases. Control or ownership of failed and worthless assets, especially those in outer space, gives nothing to anyone.