Minority Shareholders Update Hello Flynorth,
Legal counsel has reviewed the actions of Clairvest and other insiders and has made a number of recommendations as to how best to proceed. We have a meeting tomorrow to go over these options, from the perspective of the minority common shareholders.
From the debenture holder position, there is no question that Clairvest and senior Discovery Air management have defaulted on the indenture provisions and have left themselves vunerable to a vote by debenture holders to force the Company to redeem the debentures immediately. Steps are underway to communicate with all beneficial holders of the unsecured debentures to secure the 25% of issued and outstanding face value needed to initiate this contractual remedy set out in the indenture.
In addition, the debenture holders can seek a court injunction to delay the proposed buy out of the minority shareholders until the redemption of the unsecured debentures has been addressed and completed. Legal counsel is preparing the injunction and can secure a judges order prior to the scheduled shareholder meeting in May.
While a number of issues have been raised by minority shareholders in communications with the Ontario Securities Commission, they will not react within the timeframe of the proposed buyout and privatization, although they may investigate after the fact (which I do not believe would be of a whole lot of help to the screwed minority shareholders).
That's all for now. Stay tuned for further updates as they become available.