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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by rad10on Jan 10, 2018 9:49pm
135 Views
Post# 27330069

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:secured debt now 89 cents on the dollar

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:secured debt now 89 cents on the dollar
meetoo1600 wrote: Rad10 said:

Deferred interest is an accrued liability - you can't add it to cash on hand. Even the kids from the wrong side of the tracks know that!


You are correct from an accounting point of view (GAAP or IFRS), but not from a financial restructuring point of view.  The restructuring will cancel the debt, including the deferred interest, and it will no longer be a liability and no longer payable.  C’mon rad10, everyone understands that no matter what side of the tracks he or she is from.

The only question is how much of the company’s equity will the debt buy, and ergo, how much will Remain in the hands of current equity holders.  Once we know that, everything else falls into place.[/quote]


This level of "debate" is getting silly -  Its masturbatory.  From a restructuring point of view the deferred interest makes things more difficult.  The amount of debt to be restructured has increased over 3% but more importantly good will has evaporated. 

What you have consistently proposed is a well articulated gamble.  We know that substantial dilution will have to occur, we also know that the face value of the current debt exceeds a reasonable enterprise value for the company.  We can also infer that negotiations are deadlocked.   Why on earth would any unsecured noteholder agree to a deal that left significant upside to current shareholders?  This is not a debate - your fanciful opinion is becoming more and more ridiculous. 
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