Zargon Oil & Gas Ltd ZARFF

Debenture holders will get stock either way

[stockfy]

rad10, you keep posting clueless comments repeatedly exposing your ignorance. You have no idea what you own, which industry ZAR is in. You have been a waste of time from DAY ONE on this board.   

First, start with the basics. Debenture holders are NOT bond holders. Apples and oranges.

Second, the debenture holders will get stock either way. So it's at their best interests to let the stock rise as much as possible. And the stock will rise as much as possible when ZAR saves NOW this C$4.2 million in interests. This is how it will drill more, it will produce more, it will sell to another company at the end of the day. If they don't allow ZAR to save this C$4.2 million in interests, ZAR will drill less, so it will be sold at a much lower price in 2010 once they receive their stock in December 2019.

Third, Craig Hansen, the CEO, is a major debenture holder and supports the deal. This means a lot. Common sense. But you lack it.

Another poster alleged that Craig Hansen must be replaced among his other non-sense comments. He must live in his own parallel world, he has no idea what has happened in the industry since 2014, where the oil price is, the bottlenecks and the wide oil differentials in Canada. Keep smoking your pot my friend.

[rad10]

Suggest you look up the definition of a debenture - fool. You have been the prize plonker with you ridiculous commentary. The only thing you have said that is accurate is we will own the company - question is how much. I dont Think we should accept less than 98% of the equity. As stated you are so far out of your depth it is embarrassing...

[ppp]

I guess now it is time to figure out what the company is worth dead or alive. IMO the debs are better off to take the deal. I have gone through this a few times before in my 30 years of investing. first off lawyers cost lots of money. Next there are countless little creditors that get paid before you. Take what is offered and carry on. 

[PetroExplorer]

Good point ppp: layers are expensive, and so are Reserves Auditors, Receivership Managment companies, and Investment Bankers.  These are all people that salivate overe the "guaranteed fees" they can get, in a Court ordered wind-up of a company. I don't think Debenture Holders are leaving too much on the table, if they take this deal.  The implied value is $42.9 million to

[rad10]

A failed vote and a new 10 day average is not a whole lot of work for a 4% return..... it is a no brainer.  Interesting to see how this plays out. No consent fee mentioned in the announcement. 

[pablo87]

In Twin Butte case, priority rank of debentures - albeit only over shares - proved invaluable...probably not the best idea to give that right up now even though we get converted anyway in a year.

[rad10]

Indeed Pablo...  there is no rush for any debentureholder to accept this deal. 

[ppp]

Petro , always good to see your point of view.  Thanks for keeping it real. GL.

[rad10]

What will the VWAP be in December 2019?  You think it will be ten cents???? Why forego interest payments and take 94% of the company.  There is only 3.5 million US of secured debt ahead of us. Wait for the "ad hoc debenture committee" to form on Bay St and for the arm wrestling to commence............. Been down this well trodden path half a dozen times in the last 5 years.

[Cardboard1]

For debentureholders (I am) to try to squeeze everything out is gaining 6.6% or going from 93.8% to 100% ownership and this theoritical calculation means waiting until December 31, 2019 and even then the shares would trade at some value. A conversion into shares will happen no matter what per the announcement and they have the right to do so per the indenture. And no receivership possibility here

[rad10]

you are outlining all the reasons not to take the offer cardboard.  where are the shares trading?  why should we give away a premium on the current share price and forego interest payments................ Trading similar notes in Arcan and Twin Butte - it made sense to delay as long as possible.  Everything worked out a treat with those two!   Any prospective suitor will

[Cardboard1]

"why should we give away a premium on the current share price and forego interest payments" To make money more quickly vs wasting time and risking a lot for a few pennies. There is no "giving away premium on the current share price". If they had announced this not long ago at $0.30/share, the share price would have dropped to $0.15 and you would have said the same thing. 

[rad10]

10 months is the delay cardboard and for that you are foregoing debenture interest and leaving 6% on the table.  The meeting is scheduled for the new year.....  SMH.