RE: wow, just wow i hope the c & ds come back to life too, but i doubt we woud get anything if. I have to look into this. The last thing i want is more YLO common instead of the DIV.
doing CCAA is not a bid deal for them. it feels like they are setting up for that, maybe creditors are getting a deal on the new CO
As far as the common shares, YLO has warned that issung equity is an option. This would dilute it to oblivion.
Take megablocks as an example. same issue, too much debt, but lots of revenue, declining on some lines. Savior comes in (fairfax), goes from 50M shares out to 320M shares.
So if YLO starts converting prefs and issuing shares, at 15 cents, that's going to be a gazillion shares, hence the idea that the common is worthless. the stock cannot recover in that kind of scenario. Then the do a 1 for 10 or 1 for 20 split, and either way, your old shares have a fraction of the claim to profit they had before.