RE: RE: Conversion and reverse split " The cie is bound to their obligation unless they put themself under bankruptcy protection, which is a real possibility. But the pref A obligation might be a pain in you know where put they can not put it aside without serious litigation..."
Dead wrong. CCAA is a creditor action and no equity contracts are enforceable when under it. Before anything can be given to the equity holders they first must make all creditors whole. It is the law. There will be no litigation action by the equity holders. I can link you to many rulings and proceedings if this is in doubt. It is as commonplace as the sun rising in the morning.
Back in 2008 or 9 there was court case to see if preferred obligations could be viewed as debt instead of an equity obligation. The ruling (To my best recollection) was no, with the exception being if management had debt holders convert to an equity instrument when they knew that CCAA was in the cards, then it could be viewed as something along the lines of fraud and not be enforceable...Of course that has nothing to do with the present preferred shareholders of YLO.
Some say that they may be able to avoid CCAA. My feeling is that they will desire to go that route in order to shake the preferred obligations which they really can not afford to make good on. The may try CBCA (With the debt holders approval) as a first step and put a proposition to the equity holders to vote on. If you reject it then they will go CCAA and it will be forced on you. Anything else is wishful thinking in my book... but hey, it is not cast in stone at this point and in this free world you are entitled to wish as much as you like...I just hope you haven't got the family home riding on it.
PS- I said with the debt holders approval because if the debt holders view any offer to the equity holders as a threat to them being made whole, then they will stifle it with a forced CCAA when practical. With the market trading debt at a deep discount, they have already cast their vote on the likelyhood of the debt holders being made whole and therefore have also stated their view on the fate of equity holdings.