Post by
alkhor on Feb 27, 2015 8:22pm
Just a thought
Since the plan they have stated is effectively selling all the assets to Brookfield for a price equivalent to the amount they are owed, the sale would need 67% of the shareholder vote to pass. As far as I can tell, no shareholder in his right mind would approve the deal. The way around this would be to issue Brookfield something like 250MM shares for the price of the money owed. Brookfield would then own 95% of a company with low debt and tradeable on the tsx. Debenture holders would be the big winners, whichis why management will probably not consider. Yellow pages did something similar, but it was a lot more complied.
Comment by
2Greying on Feb 27, 2015 8:56pm
They could buy shares at 13 cents...maybe they are? I think this is headed to bankruptcy....note and debenture holders must be treated the same as all unsecured creditors.////they can't pick and chose who to pay. I think the debenture holders and note holders will force it into bankruptcy...what have they got to lose?
Comment by
llennn on Feb 27, 2015 10:09pm
Better chance of getting a glimpse of Uranus
Comment by
alkhor on Feb 28, 2015 9:52pm
Any agreement with Brookfield will require shareholder approval, they after all own the company. If tt affects the debentures they will require their approval as well. There will be some incentive to get the approval, so the shares do have some value. My guess is the value is more than the current 13 cents, which represents less than 1% of their value from 2 years ago.
Comment by
2Greying on Feb 28, 2015 10:22pm
Possibly but Brookfield may have enought shares...would be nice to see a current list of major shareholders. I do agree it may not be that simple for Brookfield to just take over....not likely debenture, note holders and shareholders will just say ok.