How do FCCB holders recognize revenues?
Various FCCB issues seem like teaser loans to jobless folks. It's like asking the incorrigible alcoholic to mind the bar.
Managements dutifully raised as much money as possible through FCCBs by projecting a glorious future and then siphoned off the money through capex, acquisitions in foreign countries and I'm sure through plain pilffering. (read money parked in opaque foreign banks) Such managements have also pledged away most of the management stock holding so they'll not hold the bag and they also got to raise a lot of money.
I doubt any ordinary banker type of evaluation would have passed muster. Given this i suspect the investment bankers always expected a bunch of these FCCBs to explode but they got to collect their fees and bonuses upfront so they probabily never cared.
Edited by subu76 - 03/Dec/2011 at 10:18am
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