TSX:PWCPRB - Post by User
Comment by
esviagraon Sep 14, 2016 10:05am
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Post# 25235402
RE:Why would Series C noteholders vote for this?
RE:Why would Series C noteholders vote for this?This is a steal but I think they're getting away with it. Management has the vote - this turns their worthless common shares into something of value.
Currently, each note is getting abuot 130 shares - their fairness opinion will probably be arguing the bank's book is approx 7.7 a share - 130 x 7.7 ~ 1000 so it is fair. Seeing the Twin Butte fiasco, as long as you pay up, someone will write something about your deal being fair.
If the shares are valued at book value and assumed can be liquidated at such, then there are left overs value after paying off the note. That's probably how they come up with their numbers. Few details are in the release. The note interest deferral definitely is worrying - imagine if TSX says the note trades on flat basis - that would be disaster for the seller.