GREY:TBTEF - Post by User
Comment by
Oldfart74on Mar 21, 2017 12:20pm
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Post# 26008340
RE:Why do you guys think tax benefits come with shares?
RE:Why do you guys think tax benefits come with shares?Torcula wrote: I'm curious to see a source for this, I don't think it is true.
From what I know this is the general receivership process:
1) Company goes into receivership
2) Receiver is appointted (FTI consulting)
3) Receiver Begins liquidation process by begining a bid process
4) Bids are collected, highest bid is prospected to ensure legality (This is what appears to be happening now)
5) Sale is finalized (Receiver has appeared to apply for this already.)
6) Money is distributed according to the ranking of debt. (i.e. Secured, Unsecured (debentures), Shareholders.)
7) Process is completed, receiver is absolved of any duties/liabilities.
The whole company is what is likely being bought, so the tax benefits will come with it. I don't think shareholders will receive any value unless there is leftover money from paying out debentures.
Correct. All the oil and gas properties are being sold. Many years ago, the tax act allowed the purchaser of substantially all the company assets to utilize the tax pool balances. Tax specialists came up with many schemes to use the pools and losses but most including TBE have been reassessed by CRA.
Any shareholder expecting to receive a dime is living in a fantasy world. With regards to the unsecured creditors, it does not appear there will be a distribution before September.