Fortress Global Enterprises Inc - Class A FTPLF

WRONG Contrarion..... I suspect Step 2 IS DILUTION

[HCI_STEEL]

They have an upcoming interest payment on the debs. More than likely they will be converting the debs to shares, and also have to pay the interest in shares. Existing shareholders are about to get WIPED OUT.

[Contrarian333]

Actually you are wrong - but its a short while to see who is right.

[HCI_STEEL]

I hold the debs so while it would be nice if I get CASH for my upcoming interest payment, I still don't see how they can come up with it to pay us. Couldn't pay back the debs, had to raise the interest rate to 9.75% and defer....now, like you said, we will know very soon. Share and deb pricing shows my expectation of dilution to be what the majority expect.

[Contrarian333]

You won't make any money doing "what the majority expect".  Paying back the debs vs paying an interest coupon are a completely different level of obligation.  What they have effectively just done with yesterday's announcement and with whatever subsequent financing they will do is kick the can way down the road - creating all kinds of optionality in the business. 

[HCI_STEEL]

Notice the 'extension' runs to one year BEFORE the debs are due!

[nkbourbaki]

What do you mean?  The debs are due Dec 31, 2021.   The moratorium extends to the same date, but may be extended by another 2 years upon further 3rd party financining.  The IQ loan doesn't mature until 2031 (also could be extended another 2 years). I share your concerns about the upcoming interest payment on the debs.  I think they'll figure some way to do it in

[Contrarian333]

I imagine there would be a limit on the $$$ of converts that could be tendered for. 

[HCI_STEEL]

There is no limit on repaying the debs in SHARES. I've had it happen on a number of companies debs I have owned in the past, including most recently with TEI (toscana energy). It basically wiped out existing shareholders leaving them with about 5% of the shares post debenture redemption. The debs have to be repaid based on the 20d average share price ie 1000.00 face value deb would need