PaperlinX will close its offer to holders of its hybrids in frustration at the actions of hybrid holders that sought to block the loss making paper merchant’s scheme at the Takeovers Panel. PaperlinX told the media, “The hybrids are a sideshow and I’m frustrated by it because it takes away valuable management time and resources.” PaperlinX last month offered hybrid holders a 55 per cent stake in the company in return for cancelling the securities and their first right to dividends. Under the company’s plan existing ordinary shareholders will have a 45 per cent equity stake in PaperlinX. By cancelling the hybrids PaperlinX hopes to clear up its capital structure that has held back a restructuring after $356.9m in losses over the last two financial years. The losses mean the value of the hybrids have fallen more than 80 per cent since 2007.