Would, could, should F&N default?

FRASER and Neave's (F&N) alleged threats of voluntary default will come into focus this week as the company meets shareholders and bondholders to discuss its plans to list its property arm.

Bondholders are up in arms over what they feel is a deeply unfair attack on their rights, while minority shareholders wonder what all of this actually means for the business.

What those stakeholders have to do, however, is to look beyond the moralising and focus on more fundamental questions: What will it cost F&N to default, and what will F&N gain if it does so?

And F&N on its part can afford to be more transparent.

F&N shareholders meet today to vote on the planned splitting of the business into the Frasers Centrepoint (FCL) property unit and F&N, which will retain the beverage and publishing businesses. Given that Thai tycoon Charoen Sirivadhanabhakdi now controls north of 90 per cent of the company following his successful takeover of the company earlier in the year, approval for the split is already assured. But a number of minority shareh…