RE:RE:RE:RE:RE:RE:StakeholdersBASTILLEDAY4U wrote:
If you showed the Ad Hock group that the shareholders are getting diddly squat, as a debenture holder, you would first wipe the sweat off your forehead, give a sigh of relief, give a smile, wink and a nod to the specially appointed team then walk away with no objections feeling like you just won the lottery. After which, the gangsters have a good laugh and reward themselves with a 36-oz., bone-in, Black Angus rib-eye steak at one of Calgary's finest.
I disagree with your wording: it wasn't about showing the Ad Hoc Group that the shareholders were getting diddly squat, but rather that the sales proceeds would give the Debenture Holders a "Substantial" payment, although not full payment. This had to be weighed with the costs of incurring more action, and trying to stall the Receivership Approval, which may or may not have been successful.
It wasn't the Ad Hoc's Group to save the company, although they probably just should have assumed directorship of the company, and would have done a better job in a restructuring. Remember: the only lawyer interested in trying to save the company, was the Ad Hoc Group's lawyer. There was no shareholder representation.
Ultimately, a CCAA process, would have been the proper thing to do, and we all know this lesson now. You can drag the CCAA process on and on: just ask Connacher Oil and Gas and Quattro Exploration. There would be some haggling between shareholders and debenture holders: maybe some shareholders would have said they can raise some new financing, in a different class of shares.
But sending the company into receivership, meant there would be a quick sales process, and whatever the bids were at a certain point, that would be it. Unfortunately there was no miraculous increase in oil price, that would have saved the company in time, before the bids were due.
Next time people notice strange things going on, and a drop in value, they have to get up in arms, and question management. Unfortunately, the entire system is set up to stop shareholders from organizing against management. And forget about the Securities Commissions: they are pretty well useless. White collar crime is so rampant, that there is no way they can handle all the different cases.
You were correct that the gangsters had a good laugh: they'll be ramping up their lending in time for the next oil boom.