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2242749 Ont Ltd. > New Monitor's report, May 21

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Comment by alwhoreon Jun 06, 2015 5:59pm

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RE:RE:RE:RE:New Monitor's report, May 21

alkhor wrote: They need to look at what Yellow Media did and do something similar. Off the top of my head here is one possibility:

Brookfield get 75% of Newco plus 35 cents per dollar of new debt

Noteholders get 10% of Newco plus 20 cents per dollar of a new debenture.

Debenture holders get 7.5% of Newco plus 20 cents per dollar of a new debenture

Shareholders get 7.5% of Newco.

Total debt is reduced by 70% (manageable),

Brookfield come out further ahead and have shares which can be sold on the open market, Noteholders and debenture holders still lose well over half of their investment but at least get something.

Shareholders come off the worse losing 92.5% of their ownership but they are the lowest in the peking order and at least get something. Their 7.5% ownership is now in a company with much less debt, so their equity is worth much more than before.

I haven't run the actual numbers, this is just an example.