Post by
righand2 on Apr 23, 2017 9:27am
Debentures a great buy
If the unsecured debentures are redeemed before the meeting, they can be redeemed by issuing common shares, but that would be at about 19 cents, so the debenture holders would actually get more than 100% of their money back. After the meeting, the debentures cannot be converted into common shares, as those share have to be "freely tradeable", and since the company is going private, that will no longer be the case.
So unless they redeem the unsecured debentures before the meeting, it all boils down to whether the company will be in a position to pay them out in 14 months. The only way out is for the company to be in default of all of their debt obligations, and I wonder if Clairvest and the insiders who took this private would be ok with that?
The only risk is if the company asks the unsecured debenture holders to extend the terms, again, and I have a feeling the deb holders would tell Clairvest to go fck themselves.
So there is a pretty good chance that in 14 months time, those buying the debs at 50 cents on the dolalr are going to be pretty happy.
As a major holder of the debs, I am voting a resounding YES to this deal.
Comment by
Flynorth1 on Apr 24, 2017 3:53pm
Having talked previously i would love to know if there is any plan to follow up on the concern regarding minority interests thanks
Comment by
menoalittle on May 18, 2017 8:16pm
Have you finished selling your 1.5%, Stan?