Arcan Resources Ltd ARNBF

What about this?

[jacek99]

The deal does not go through and ARN continues.
It managed to pay down some of its bank down in the last quarter, so why would it not be able to continue to do so? Production grows, so I don't understand why payments can't continue to be made. As a bank, if I'm getting paid and making interest, why call the loan?
The time comes, we don't have $ so the debs covert to stock. Sure we get diluted but the o/s loan is $150 million and we continue.
I just don't understand why it is this deal or bankruptcy?
Please explain.

[teevee]

why? because shareholders CPG and LTS would likely vote against such severe dilution. THEN debenture holders could push for bankruptcy, but if they do that, they would be lucky to get 50 cents on the dollar instead of the $.825 offered now.....as I said before, THE best deal is for everyone to vote in favor. IF CPG and LTS want the assets, they can vote against the deal, and then later vote

[seriousinvest]

Why do you assume that CPG and LTS have any say in how the debenture holders are paid?  Clearly the company has to satisfy the debenutre holders when they come due with either cash or stock.  They could only get the cash if the company were able to sell new securities which may be doubtful.  Then management would have no choice but to issue additional shares regardless of the

[teevee]

The conversion price on the debentures is $9.00 which means debenture holders won't convert. The company can't redeem the debentures so all they could do is offer shares around market price. Debenture holders would probably vote in favor, but   shareholders (especially CPG and LTS) would get to vote on this and would likely vote against being diluted so heavily. 

[rad10]

Hi TV - I appreciate that you may be new to this.   There is a lot they can do if they work with us and obtain the consent of the debenture holders.  An extension of the term with a consent fee, a reduction in the conversion price, an increase in the rate on the note or a combination of any of the three.  I am not too worried about this as maturity is 2 years away and the assets

[teevee]

I am not new to this. The bottom line is what the assets are worth. In this market, maybe $55K/flowing barrel. subtract bank debt from that and see if unsecured debenture holders get more than 82.5%, and  in a distress situation where the bankers are in charge, the selling price would be less. If this deal is voted down, and if a subsequent conversion of the first debenture at market price is