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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by onerealityon May 23, 2012 9:00am
182 Views
Post# 19936421

RE: My 2020 MTN are at 52$ this morning

RE: My 2020 MTN are at 52$ this morning

"The bondholders  wil have to offer more than 3 cents a share to strike a deal."

 

Since when did the bondholders become consumers looking to buy shares from you? They are creditors looking to collect on moneys owed to them by you. Do you pay your credit card debts by having the credit card company issue you a cheque and then you will allow them to cancel the balance? Do you tell the bank when they are about to foreclose on your home that you will be willing to sell the house to them for a lucrative price that you will decide on and if they do not accept your  offer and pay you the money that you demand, then it is no deal and you will just keep the house and they are totally SOL?

 

It just does not work like that in this world. They are going to take shares for partial payment of debt owed. If you block it in the Quebec courts, then it is just a matter of time until they can go CCAA and when under that you have no means to block it. That is the way it is. In fact they may already appreciate that you will block it, so their plan may be to do this directly under CCAA as soon as the circumstances permit. Either way, no one is "buying" anything from you. They are looking to "Take" shares from the company in lieu of money's owed in exchange for partial debt relief. Typically the way it is done is the company enacts a massive consolidation or elimination of the existing shares and new shares are issued to the debtholders. The market has come to grips with that conclusion and it is why the present shares do not reflect the underlying value of the company.

 

Not trying to pizz on your parade, but believing in things that logically can not happen serves no useful purpose.

Bullboard Posts