All the market suffering which is what might be expected but those businesses with income denominated in USD should see a boost of some kind even if this is short lived. Dollar up/Sterling down by say 5% should feed through to a good boost to profits for Avanti next year if this is sustained. Too early to make predictions but clearly some good news is needed when year end numbers for 2015/16 are announced. These currrency issues might help.
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.
Re Avanti's future. The message below is from the GOV.UK site and would seems to indicate that the Governements Universal Services Commitment obligation is to help to provide a satellite service direct to the end user via a subsidy towards the cost of the satellite dish and its installation. i.e. not via miles of copper to the home as suggested by Sidevalve. Surely a good initiative which deserves success and the only criticism is that it was not initiated some years ago when there was a real need in rural areas and satellite services were available.
Re Avanti's futere: The scheme to deliver the 2 Mbps Universal Service Commitment (USC) is operated by a partnership between DCMS, local bodies, BT, a number of satellite broadband retail service providers, and a number of satellite broadband platform providers. The initiative will be administered by local authorities who will provide a code to eligible homes and businesses upon request. They can use the code with one of a selected number of retail service providers to obtain a subsidised satellite broadband service, including a free satellite dish and installation in most cases. The code does not have a specific fixed value, but when used to obtain a satellite broadband service from one of the selected retail service providers, the use of the code will reduce the total cost (i.e. installation and commissioning costs plus 12 monthly subscriptions) by around £350.
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