Post by
Siyahvezir on Oct 19, 2017 10:14am
the grace period
The deferral of the interest payment does not result in an Event of Default until the expiry of the 30-day grace period as the company has decided to use this period to defer the payment of approximately $26 million of interest due today on its $735 million unsecured notes. The Company will use this time to continue its discussions with lenders with the goal of reaching a consensual agreement that would significantly reduce the Company's debt and interest payments to create a financial foundation able to support Concordia's long-term growth, in other words, turn the debt into equity through a conversion. The resulting dillution of the floating shares will reduce expected values in the short term but will rectify favorably the current state of the company in the long term. This move comes shortly before the general raise of the interest rates which is expected to affect adversly debt loaden companies starting 2018.
Comment by
Evenstephen on Oct 19, 2017 10:25am
Exactly. Short term pain for long term gain.
Comment by
Daytripper65 on Oct 19, 2017 10:41am
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Comment by
rad10 on Oct 19, 2017 3:34pm
LOL - you will be diluted into oblivion. Its more than short term pain for an investor in the common shares.
Comment by
rtftech16 on Oct 20, 2017 12:07pm
LMAO THAT DIDNT TAKE LONG TO SEE
Comment by
Evenstephen on Oct 20, 2017 1:48pm
Company's getting rid of 2b in debt. There's gonna be dilution but no bk. told you. This is good long term. Company's going to increase cash position significantly without all those interest payments. With time and execution by management on their business plan this will be a very different company. Good bye.
Comment by
wheelingit on Oct 20, 2017 2:11pm
how long are you prepared to wait??? part of this restructuring likely includes asset sales, therefore decreasing future cash flows, not sure the cash position will change significantly in the short to medium term. book your loss, everyone else will be this year-end.. move on to new opportunities, there are plenty of better PENNY stocks out there. IMO Wheels
Comment by
marcrobert on Oct 20, 2017 2:30pm
so they issue a billion shares at 30 cents, you get the idea
Comment by
Evenstephen on Oct 20, 2017 2:35pm
No they issue new shares. The bond holders get a % and the old shareholders get a %. Hopefully they allow the common shareholders to own a peice of the new company.
Comment by
rad10 on Oct 20, 2017 2:39pm
Epic bagholder quote - sounds more like a diehard Toronto Maple Leafs fan than an investor..........................................
Comment by
Evenstephen on Oct 20, 2017 2:40pm
We'll see. No bankruptcy like I told you goodbye.
Comment by
wheelingit on Oct 20, 2017 3:02pm
I had no qualms with you Rad but you had to bring the Loafers into it Maple Loafers get deep into the playoffs this year, but you probably didnt hear it here first Wheels
Comment by
rad10 on Oct 20, 2017 3:28pm
Hey Wheels - we all have our achilles heel. I am a lifelong Arsenal fan. It has been a really rough decade and now no champions league football. This is the song that sums up my sporting loyalties but it is equally appropriate for Concordia's very own EvenStephen................... https://www.youtube.com/watch?v=IuHhlGMuIus
Comment by
Daytripper65 on Oct 20, 2017 5:55pm
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