RE: Today The stay period was extended once already from Dec 31 to Jan 18th. A second extension may be asking too much.
As the update stated, unsecured creditors can't all be paid so shareholders are out in the cold. This doesn't mean a deal can be reached with some creditors to exchange debt for shares. But then coming up with a good reason to do such a swap, will be tough. Would have to prove the company will be profitable enough to get back all of the investor's money.
With no meaningful sign-on's for the past 10 months, it's an uphill battle to prove things can be turned around. Then there are the dealers who left. Ontario lost at least 9 dealers, BC lost 2. Alberta 1 and so forth. Now with Air Miles entering this business category, how many more will Futura lose?
I can only see a major restructuring, a sound business plan and financing secured to get Futura going. If they have a NR this week, financing has to be secured along with a rollback. Without that, no expansion into the US.
I'm wondering if they are waiting for financing to materialize, and that's the reason they may have wanted an extension. Looks like too much to ask for this stock. Could go into another line of business, with more bluesky potential. but that has its own risks.
Took them years to get into this situation, can't expect a quick solution. The income statement provided a warning a few years ago. It didn't happen overnight. To have interest charges almost 1/2 of gross revenues was a clue. Also poor revenue growth as not being able tyo support the growth in liabilities. So the signs were there.
How people bought in at 2, 3, 4, 5 cents when the stock was worthless and a weakening balance sheet, is beyond comprehension.