Arcan Resources Ltd ARNBF

RE:RE:RE:RE:RE:RE:RE:RE:RE:teevee, debenture redemption

[teevee]

jd43xl wrote:

teevee wrote: I believe the reason why the debentures traded at 50-60 cents on the dollar before the offer on the table, is because the market believes that is all they are worth after satisfying the secured lenders/banks.

Well, I believe you are talking out of your butt. The Aspenleaf offer proves that the market is wrong. They are offering enough to pay off the secured lenders and the debenture holders at face value. The bottom line remains that the debenture holders are being asked to give money to the common shareholders, who rank at the very bottom of the pecking order. It is simply unacceptable.

Not so. Aspensleaf is simply paying a premium to market to the debenture holders and throwing a bone to shareholders. What ever you think or believe and insist is fair or what ever, if voted down, your debentures are likely to return to 50-60 cents on the dollar, may end up being worth less if ARN continues to deteriorate, either resulting in the banks reducing or calling the line of credit, or the debenture holders eventually being redeemed at maturity with stock. LTS and CPG aside, have you asked yourself why shareholders would vote in favor if they were offered nothing?