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"Nevertheless, the chief executive replacement does not immediately deal with the balance sheet issues the company is facing.
However with net debt at over £3bn and interest cover at 1.5 times (2009) the balance sheet issues are far from solved.
Our call is that a modest re-rating is likely as balance sheet issues and concerns over earnings risks move into the rear view mirror.
In 2016, proxy contests have more commonly been focused on board-related governance issues, with balance sheet issues and M&A actions less of a focus.
"This agreement in principle with our lenders follows months of intensive strategic review of our balance sheet issues to financially strengthen the company," said Mary Berner, the chief executive of RDA.
"Now that their balance sheet issues are off the table, there's no reason for them to lose out" as demand for the infrastructure that makes mobile phones work continues, Mr. Goel said.
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The accountants, we heard, won't address this issue as climate is not a balance sheet issue.
"The underlying issue is a bank balance sheet issue, and that cannot be solved by changing the way the rate is calculated".
Analyst John Lawson said: FirstGroup will shortly put its balance sheet issue to bed (for now) and, whilst the final outcome of the rights issue will not be known for another two weeks, investors should at long last begin to focus on the recovery story (especially in student and UK bus), instead of fretting about the group's finances.
But the firm also has balance-sheet issues.
-- and the balance-sheet issues, in particular pensions," said John Devine, G.M.'s chief financial officer.
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