RE: RE: Deb holders bailing"From what I understand about the debentures, if YLO couldn't repay them at par (or extend them), they could convert them into common shares at the prevailing price."
No...They are convertible but only if the debenture holder chooses to do so. Management has no legal out hole other than under CCAA or striking a mutually agreeable settlement with the debebture holder. Excluding that, they owe $6.25 per year in interest and must redeem them on Oct 1 2017 for $100 per debenture .It is the contact that they entered into and they are legally bound to it no matter what the market thinks or YLO wishes or people on this board believe. By law, if they stop paying the interest, then I can force them into CCAA by myself at that time without YLO, the bondholders or bank having any say in the matter.
Note the line in the following
Montréal (Québec), July 8, 2010 – Yellow Pages Income Fund (the “Fund”) announced today that its subsidiary, Yellow Media Inc., has completed the closing of its previously announced public offering of $200 million aggregate principal amount of 6.25% convertible unsecured subordinated debentures (the “Convertible Debentures”). The Convertible Debentures pay interest semi-annually on April 1 and October 1 of each year commencing October 1, 2010. The Convertible Debentures have a maturity date of October 1, 2017 and are convertible, at the option of the holder, for trust units of the Fund at an exchange price of $8.00 per unit.
https://www.ypg.com/en/newsroom/424-yellow-pages-income-fund-announces-closing-of-200-million-offering-of-convertible-debentures