OTCPK:TOUBF - Post by User
Comment by
algroveon Mar 30, 2012 5:52pm
317 Views
Post# 19741369
RE: What is the difference between
RE: What is the difference between A sale under the CCAA would allow the purchaser to take title to the assets without any future threats of class action lawsuits. The sale would be sanctioned by the court, and all prior claims would be extinguished. Any person or persons wishing to make a claim, whether class action or otherwise, would have the opportunity to do so before the CCAA judge, who would take all claims into account in reaching his/her decision to approve the sale. So in a nutshell, the sale process becomes more streamlined and more potential purchasers will likely step to the plate.
Overall a good move for the shareholders, assuming there is genuine commercial interest in buying the assets. Given that the book value was approx. $12 per share, a potential purchaser could make an offer at a steep discount and still cover the debt and leave a respectable piece for the shareholders.