DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

Discovery Defense - Does that save our debentures?

[Alejaho]

Its is great that discovery defense has been awarded this longterm contract with the Canadian armed forces. The question remains how will this affect the redemption of these debentures eight months from now when the debentures are due? 1) So, first question is what percentage of da.db.a does clairvest hold? 2) Second question is if discovery were going to continue past june/18 in its current form, and the company intends to redeem these debentures in good faith, why are they not currently out in the marketplace buying them up at less than half price? 3). Third question is whether the value of their military contracts, and of discovery defence itself, is enough to keep this organization afloat? Would they be able to get financing to cover the payout required to redeem these debentures in good faith? One would think that if this were a financially healthy outfit that they could get a better rate than the 8.375% they pay on this debt, especially if clairvest co-signed. 4) Assuming they cant get the required financing, are debenture holders willing to extend the maturity date beyond june/18? I know i am not. This was a healthy company when u bought in, following the amalgamation of several smaller an profitable organizations, discovery air has gone to hell in a handbasket. It hasnt made a profit in years and keeps running deep deficits. Clairvest, the owner, has written off its commonshare investment as far as i have heard. So, what is Discovery Air + Clairvest's plans? Will they honor the required redemption of these bonds or are they planning something more nefarious?