RE: RE: RE: RE: RE: My 2020 MTN are at 52$ this mo If a proposed deal with the bondholders involved Yellow issuing new common shares and giving them to the bondholders in lieu of the debt, are you sure that this would need shareholder approval?
Servotech that is a fair question. You are right that management does have a preordained right to issue shares. The problem I see is the possibility that an appeal by the shareholders to the Quebec courts that a consolidation then issuing of such a massive amount of new shares would in essence constitute a restructuring, which would in turn would allow the Quebec courts to use their authority to overrule such a clause based on Quebec law that states shareholders of a public company have the right to vote on a restructuring.
So what I am saying is the shareholders have no right to stop management directly but they may be able to use the Quebec courts to do so. I am not a lawyer but it seems to be a reasonable possibility. If so, then management would need to take it out of the jurisdiction of the Quebec courts, and that is called CCAA. Just reasonable speculation on my part but the possibilities are reasonable in both our positions....Time will tell