OTCPK:ARNBF - Post by User
Comment by
teeveeon Dec 20, 2014 4:38pm
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Post# 23252963
RE:The offer
RE:The offerIf you are fully aware of the debentures, they can be paid with stock in lieu of cash when they come due, so holding out for cash redemption is a pipedream. Debenture holders were either ignorant or stupid not to accept the Aspenleaf deal when it was on the table and now they get stock instead of cash at $.825 on the dollar, whether they take it now or when the debentures are due. Given the state of ARN's balance sheet, debenture holders can either take stock now, or later. Either way, they are at risk of the banks withdrawing the line of credit when renewal time comes. ARN is hedged for all of 2015 and part of 2016, so it is unlikely the line credit will be withdrawn. This is a time when greedy debenture holders get what they deserve:-)