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Takeaways: Why can’t the industry come together & arrive at a fair value of the markdowns (Vodafone)?
Seems to be a Knee Jerk reaction, if court verdict was the main concern for a default to occur then one is betting on a third party outcome. Two things 1. Vodafone would definitely have their plan B assuming a negative verdict, which they provisioned a small portion of cash and also took the stress off its partner. 2. It is there to stay in the business so in all it’s due merits would honour it’s commitment . The rating agencies are on double watch after ILFS fiasco, so to say that they have not rerated the bonds can be a little off the track. End result the investors have got caught in a cauldron, not able to realise the true value for an assumption that the paper may turn junk. Hope a balanced outcome prevails .
