A lot of detailed reading in those filed documents. More to come soon.
Paragraph 38 says:
Futura plans to return to Court in the very near term to establish a comprehensive investor or purchaser solicitation process for all or part of the Company's assets and operations, including the loyalty reseller operations, the technology assets and the tax attributes. The results of that process will dictate what type of plan or other options may be available to the Company and its creditors.
I think they are trying to figure out what the company is worth and/or can be sold for, and go from there. The value is up in the air for now, but hopefully in the coming weeks the preliminary numbers will come out. Technology assets....how much are they worth. Is this the processing division?
The status of the "Futura Rewards" program is uncertain.
The million dollar gross margin is worth something. But can the Aeroplan revenue and the other revenues be split up upon sale? The tax loss of $31 million would bring in millions.
I think they have enough to pay all creditors if everything is sold, unless there are other expenses someplace like back pay to employees. There's also a question of whether they can find buyers for the assets. Whether anything will be left over for shareholders remains to be seen.
Also, will they continue with US expansion or remain with Aeroplan. That's another puzzle. Expanding to the US with so many creditors knocking on the door. $10,000 earned form US operations in 2012, but the amount spend was much more.
A lot of stuff to crunch through before the picture becomes clear.I would at least want to know an estimate of the value of the company. Say $10-12 million?
The $1 million net revenue stream is worth $5 million? Tax loss value of at least $5 million. I figure a company like Aeroplan could use the $31 million tax credit to gain at least $10 million saving, assuming a 35% corp tax rate.