Ivanhoe Capital Acquisition Corp. Warrants each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per... IVAN.WS

How Ivanhoe Goes Bust

[Oregonduck]

Bob Friedland has committed a self-assisted suicide move by filing under Canada's Bankruptcy and Insolvency Act (BIA) rather than the Companies Creditors Arrangement Act (CCAA). This meant it is officially bankrupt. The assets will be sold off. The major creditors are the debenture holders who are owed about $73 million plus accrued interests. Shareholders will lose 100% of their money after the BK is over. It is a surprise that IVAN is still trading and being bought by speculators at US$0.44 a share even though there is zero value in them shares. No shareholders will get out of this BK alive. I think Friedland, a billionaire, is trying to stiff the debenture holders and shareholders & re-capitalize Ivanhoe after the debts are gone and he will then pick up the pieces. Don't go dumpster diving for this worthless stock. I guarantee IE will not re-open here & will be delisted by TSX. It is a different story though at OTC-Pinks as they would allow bankrupt companies to continue to trade. DISCLAIMER: I hold no longs or shorts.

[westlander168]

my plan: buy in at $0.06, sell at $0.09

[Oregonduck]

You can do that - just be nimble, just be quick until they shut down the game. For instance, when Nortel Networks and Air Canada filed for bankruptcy protection under CCAA proceedings quite a few years ago, people were warned that there was no value in those "old" shares, but speculators still bought boatload of those shares. The two stocks traded heavily daily - up and down

[ekim]

Air canada probably had a lot of shorts that the shorters were happy to close out on the open market. That sometimes puts a small rally in. Don't think IE would have too many shorters. Is it save to assume Robert's bridged loans are higher ranked then the debentures? EKIM

[Nazarbaz]

Yes, Debentures are unsecured while Roberts loan is secured against the assets of the company. It is all Roberts other than maybe a penny on dollar for debentures. It is their fault. they are certainly given the offer to be paid in company shares and they have not played ball.

[Oregonduck]

Ekim, your question was answered correctly by Nazarbaz. IVAN will be delisted by Nasdaq on March 3, 2015. The stock will not re-open on TSX & will also be delisted. As for the Convertible Debenture Financing, it is commonly derisively called by some as "death spiral financing" due to poor credit risks of the borrower. Friedland & the Board got the Company into this mess which is

[Nazarbaz]

You are right oregonduck. I didn't meant the death of the comapny is debenture holders fault. I meant it is their faukt that company dies now instead of dying 6 or 8 month later.

[HRc60to65]

Robert Friedland is holding more than 20% of the debenture face value

[veronikagermany]

This about Robert is correct. 

[veronikagermany]

Only CLL's shareholders got something. They got 2 cents. The shareholders of the other bankrupt  companies  got nothing. Their shares were cancelled.

[veronikagermany]

CLL stands for Connacher Oil and Gas.