RE:RE:RE:RE:FTI to dispute Ad Hoc Position on Subordination I may be wrong but this is the perspective of a simple investor.
From the 2016 annual report:
« In December 2013, the Company issued convertible unsecured subordinated debentures for gross proceeds of $85.0 million ($81.4 million net of issuance costs) at a price of $1,000 per debenture. »
Note 5 : Financial instruments and risk management provides a list with carrying amount and estimated fair value for all instruments.
Page 49 of the report details liquidity risk with a list of liabilities separating our debenture face value and coupon.
Note 10 of the report shows an equity component of 2,879 million for our debentures.
The Q2 report mentiones that the interest payment on the debentures, including accrued and unpaid interest up to the closing date, will be paid if the Arrangement closes successfully. In the Q2 report, note 5 is also updated.
When issued, this class of debt with no collateral carried relatively high risk and, to meet investor demand and keep the coupon rate low, a convertible option to equity was included.
On the balance sheet, our debentures were classified in the non-current section with only deferred taxes and decommissioning liability below.
Again, I’m only a simple investor and it’s OK to have a different opinion but I respectfully submit that the definition for the key terms mentioned above is the same whether you look in introductory or advanced references.