DOOM & GLOOMI wonder if the reaction would have been different if the NR hadn't used the expression "under the Bankruptcy and Insolvency Act"? Having read their NR realease a couple of times, it would seem they are setting themselves up to continue functioning for the foreseeable future, as long as they can get approval for the entire plan. HeII, they even expect to be able to sell $500k of shares for a minimum of 5 cents each, double today's price. Assuming, of course, they are able to get everyone's approval, the real issue I see is a pretty major dilution of shares. Perhaps that is what the market reaction was to? But it's money already owed anyway, right? It would be nice to know more about this Athabaska Energy in terms of what assets it brings to the table, and how many shares YAN is going to be replacing (more dilution).
The solution they are proposing seems much better than their June 19 NR: "The Company will list and sell assets commencing September 1, 2009, as needed to generate cash for debt reduction." Selling assets is never good for shareholders.
Seeing as the BoD currently holds over 40% of the O/S, and there does not seem to have been a single sell by any of them, they must believe this is going to work. I don't think the captain really goes down with the ship these days, does he? For 2.5 cents, I'll take the chance their right.
GLTA
TW