RE: RE: Got another 2.5K A's today 1) YLO tries to redeem the Pref A shares at $25 per. Total cost would be $251M, far in excess of the best case scenario of $125M that they have available under the current banking agreement. They try to spend more than the $125M and hence instant default on the banking agreement and CCAA forced by the banks.
The $125MM was for the purchase of the 2013 and 2014 expiring MTMs. I did not see anything in the banking agreement stating the Perf A shares could not be redeemed per the prospectus. They will have the money to pay off the perf A shares plus the the 2013 and 2014 MTNs. They only get into trouble in February 2015. They need the 2013 to 2015 maturing MTN holders to agree to a $700MM swap to equity to be able to meet all their future obligations.