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CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT



TSX:FUT - Post by User

Comment by BayWallon Jan 05, 2013 3:09pm
123 Views
Post# 20801847

RE: RE: Update today

RE: RE: Update today

So how did yesterday's update come through. Positive/neutral/negative? Do we read between the lines?

 

"Futura Seeks Financing"..  Hard to say what they mean. Is it simply getting money from bidders and calling it a day, or does it mean Futura will continue and is looking to get financed?

 

Looks like the "Futura Rewards" program will be sold off. Futura will remain only as a reseller.

 

"Proceeds on disposition of Futura's business and assets are unlikely to be sufficient to pay unsecured creditors". Hard to interpret, but sounds bad. Secured creditors have to paid first, to the tune of $6.56 million. Maybe they could raise more than $6.56 million with the sale of assets, etc, and have some left over for unsecured creditors, but it's not sufficient.

 

But this is of little consolation to shareholders if the company is closing up. Depends on what they mean by the word "financing". The most common interpretation could suggest that Futura wants to continue as a business and is therefore is seeking money.

 

Nothing more to grab onto, other than because it's taking so long and they may also need an extension, that the company will continue, minus the Futura Rewards program. If it was simply the sale of the business and assets, it would have probably been done by now. Even having an update like yesterday could imply there's some hope for continuing the business in some form. News releases are read by creditors and shareholders alike.

 

The term "seeking opportunities"....  Maybe we will have to wait a while longer, but at least 2 bidders are willing to continue negotiations. Of the 3 options they list, the only dead-end one, would be a bidder buying all assets--which means the end of Futura. But there are 2 1/2 options where the company survives in some form. (the 1/2 is someone buying a part of the company).

 

To me, management favors company survival. At least they have some serious bidders. But for now, I would rate this update as a neutral.

 

 

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