RE:RE:RE:The deal is economic by ripping off the debenture holdersActually Bob, there are more shares outstanding: the 198,333,333 shares are shares that will be exchanged for the purchased debentures. I got these facts from Section 3.1(g), of the arrangment agreement. (The fact we have to go in detail through these agreements, shows that little is cared about the common investor, as it is not meant to be easy to review this stuff.)
I guess they could hold everything in a sub-company, wait for prices to rise, then sell the shares to another company, for a higher amount. In the meantime, the existing shareholders and debenture holders, would just have pocketed the cash. The shares could be resold in the future, or IPO'd to the market as a "new" oil company. Management and other people associated with this "new" offering, could then make up some bonuses in the future, to cover off the losses on their TBE investments.
From the circular: "The authorized capital of the Company consists of an unlimited number of shares, and an unlimited number of preferred shares, issuable in series. As at the Agreement Date, 354,847,889 Shares are issues and outstanding and no preferred shares are issues and outstanding."