Toubani Resources Ltd T.TRE

RE: Pardon my Ignorance

[Corrigan1]

In the event of a private sale.....do shareholders get nothing?

 

It really depends how much someone will pay for the assets. Just for the sake of argument, suppose someone who either knows something or has super big cojones comes along and after kicking the tires, offers to buy all the assets for something north of the amount owed to debt holders. The company pays off debt holders in full and the remaining cash is now sitting in the bank account. Each shareholder would be entitled to a pro rata share of that.However, with a number of class action lawsuits still pending, what is the potential that the company would actually hand that over to shareholders? The BOD would be like deer in the headlights thinking that if there were no assets left and they had distributed them, they could be on the hook if any lawsuit was successful. And they would need to have cash around to pay the lawyers anyway. They are the ones who will pick the bones next after the debt holders are satisfied.