RE: RE: The same problems with... I have no idea what options they are considering. To an extent, it depends on what bids and proposals they are receiving. Lets assume they wish to continue with a loyalty program. Continue in Canda with Aeroplan or go only to the US. If the US, then get listed on a US exchange, but only if there is some financial benefit in doing so.
Since they make about 42% of total Aeroplan revneues from 2 merchants in Canada, see if the same can be replicated in ther US with similar merchants. If debts are to be paid off, at least identify the key creditors needed for survival and pay them. Aeroplan. Points, etc. If it wasn't for these partners, Futura wouldn't even be a reseller.
But the problems are, according to Futura, that cash flow shortfalls have been driven by the company's inability to increase the number of merchants that issue Aeroplan rewards or the volume of loyalty rewards they offer. If this can't be remedied, then it will be tough going the reseller route.
Tough decisions for management make in the next month. In the court documents, they say they will try to look after ALL stakeholders. I assume this includes shareholders.
What's puzzling and unusual is the optimistic statements made by management of guiding the company to profitability. This, despite their knowledge of the large debt and the difficulty in signing up a core amount of merchants and maybe even of creditor protection. When Mark left early in 2012, statements like.... taking the company to the next level of success..... growth in both Canada and the US (Mark Farrell).
".. Futura looks forward to acheiving profitability... April 2012)
"...execute on opportunties for growth" (Oct 31, 2012)
(David Campbell)
Either these people are out of touch or else they do know the business and are confident enough to make these statements. But does anyone really know the ever-changing loyalty industry dynamics?
Insiders and friends (ie;Oakwest $800,000+) do hold a large amount of debt/stock. I'm sure a deal can be worked out maybe for debt/shares. How is it that the rollback idea was voted in twice by a majority if all I seem to hear on this forum that it's a bad thing. Must be for the most part, the insiders/friends casting their votes. A rollback will be necessary for some debt holders to continue with the company and exchange debt for shares.
The CCAA process sounds bad. Some may think of imminent bankruptcy and it's all over. While others see it as a chance to get onto the right road and try again. Leaving of Mark anf Graham casts a shadow of whether Futura will continue as a loyalty reward reseller or simply stop. Or maybe start-up in a new direction with a new business. Graham Farrell left about two weeks ago when the bids/proposals started to come in.
I don't know whether to look forward to next month or not. It's that close.