Arcan Resources Ltd ARNBF

The offer

[rockman998]

I doubt very much whether those owning the debentures will approve this. I suspect the bankers have initiated this in hopes of them becoming the only lenders. The common shares holders have no rights regarding debt. 
Convert all the debentures to common shares, then the bankers will foreclose to get their $ 160 million. I think the debenture holders are a little smarter than that. At the end of the day they just want their money back and taking common shares isn't going to cut it.
I think there are a lot of bankers out there panicking when looking at the price of oil and they see the debt to cash flow for a lot of their oil companies going from 2:1 to 4:1 or greater and who knows for how long. Generally this isn't just Arcan's problem, $60 oil doesn't grow anyone's balance sheet. 
If $60 oil persists there will be alot of other companies in same boat.

[teevee]

If 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

[thedave2006]

dilution and still loads of debt...and commodity prices still not really sustainable higher or at least stablize. ps. off to taiwan after a great week in beijing and also a week at chung wah factory. merry christmas and happy healthy prosperous new year to all. cheers, dave.

[righand2]

And stupid shareholders like you get what you deserve. If you are lucky, the share price will hover around the 15 cent level. But most likely, it falls to 10 or lower. For myself, I sold all of my debentures on the Aspenleaf offer news, and am laughing like crazy! Hahahaha