RE:RE:THE REASON PRE DIDNT MAKE THE INTEREST PAYMENTSI think the decision to not make the interest payment is fairly clear. EIG is aggressively trying to buy up PRE's debt. They will then have the company at their mercy as they can either default or tender. PRE may have no defense here. However, they sure as heck aren't going to pay interest that will merely weaken their position and is about to directly line the pockets of EIG. They would prefer to safeguard this cash at this point.
Basically this newest takeover attempt by Harbour (EIG) has resulted in the decision by PRE to not make payments. They have the cash, unless their latest financial information was faked, in which case there are bigger issues.
What I expect is that if Harbour is successful in buying up the debt, they will likely either bribe the board as they clearly did last time, or make some nominal offer for shares. There will be no negotiation as the alternative will be to get nothing as by holding the debt they can force a default and take PRE's assets.
Let's hope they don't get the debt. Of course they will continue the PR war by trying to paint the picture as dire as possible.