Mega Brands Inc MBLKF

RE: RE: RE: RE: RE: money is flowing

[jjsto]

Uh, I am not sure fairfax "picked it up at peanut price." My understanding was that they were only bond holders before the sons ran the company into the ground.  They then became large shareholders due to the restructuring.  The restructuring with the capital injection must have seemed more attractive than what their bonds would have been worth in a bankruptcy scenario since there arent too many assets.   Unless I am missing something...

Also, I wonder whether or not the Dad approved of the acquisition at the time?  Bad luck played some role, but they pretty much lost the entire purchase price about as fast as humanly possible.  With that kind of shareholder loss (100% due to actions of management) it is difficult to justify almost any salary.  But, I suppose they do need to get paid something.  I am about to read "Deals from Hell," and I cant help but think that the Rose Art acquisition should be a prime candidate for a chapter to the next edition...