Looking through the supplemental declaration in support of the sale, I'm thinking we are probably going to see a similar arrangement on Burnstone. Nobody is going to want to pay 300 or 400 mm for a property that needs another 100 mm of capex in this environment. Based on what transpired with the bids on Hollister, I think the creditors see the only way to potentially salvage value is via the NPI agreements. I bet we wind up seeing 100 mm cash plus a NPI capped at say 300-400 million - which would have a present value of 50 mm - right at my 150 mm guess. If I was a creditor, I'd be pushing for this type of arrangement as it at least preserves some chance of future recovery.....but equity is toast with this route.
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