Fletcher's move to raise $750 million should put them in a better bargaining position to sell its assets.

The troubled company has managed to negotiate $500 million from banks and it's seeking another $750 million from shareholders.

It'll be selling shares to raise the money at a 23 percent discount.

The company is also selling its global Formica and Roof Tile businesses.

JMIS analyst Andrew Kelleher told Mike Hosking the company's trying to protect itself if there are problems with its US lenders.

"In the event that those lenders say 'oh, we're not so happy about the fact you've breached your banking covenant, can we please have our money back?', they are now in a position where they are able to do that."

LISTEN TO ANDREW KELLEHER TALK WITH MIKE HOSKING ABOVE