Not about yield

It is no surprise that creditors who reluctantly took ownership of Drax three years ago are now seeking an exit. Thanks to rocketing power prices, the UK’s largest coal-fired power station is firmly back in the black. The refinancing looks pretty sensible from almost every point of view – except that of incoming shareholders. What does the restructuring involve? The creditors owning the junior slices of Drax’s £1.3bn of debt, would convert them into equity. These slices – with a face value of £5...