49 North Resources Inc V.FNR

FNR Debenture Offer

[Oilman99]

Waiting it out might be the only option for FNR shareholders but it is not the only option for the senior secured debenture holders. Their is a meaning to "Senior " and "Secured" . We don't have to take a lousy offer to extend the debentures. 

     If we reject the offer which is what I expect will happen they might not get to choose if and when they sell Ominica. I think we need to contact the trustee and call for a meeting of the debenture holders?

[Ironhorse83]

That is a fair point but liquidation value of the 49 North is likely lower than you realize and the sharks will be in the water waiting. One thing for sure, a trustee in bankruptcy or CCAA will get paid before the debenture holders will!  

[Shooter0510]

I think asking the trustee for a special meeting of the debnture holders is a good idea. If I remember correctly that is an option written into the original deal filed with the regulators? I'll have to go back and re-read the 88 pages.