RE: RE: RE: RE: Yet Another Comment on the Disposi Mark, first off let me state (just in case it was misunderstood) that when I make references to "you" or use other similar words in the context that I am using it in, it is not a reference to you personally. It is meant as anyone that fits in that group. Quite frankly I do disagree with some of what you say but I most certainly am not categorizing you with the few simpletons on this board.
"I am simply making the additional point that if Bondholders do force CCAA, they likely end up with little cash and some shares that are very likely to lose value rather quickly."
Now there is a big misunderstanding on 2 fronts. I think you are mixing CCAA and bankruptcy together. First of all in my opinion it is the company that would want CCAA. It has the potential to solve their financial problems. Next, what ever deal is struck is what ever the 2 sides agree to. Who said anything about carving up the company? There is nothing cast in stone. The arrangement can be as simple as giving ownership to the bondholders for "X" debt relief. The banks are happy because there are no more preferred and a great portion of the bonds are gone which makes payment of their debt more likely. In return they revise some deadlines. The bondholders are happy because the probability of survival of the company just increased which benefits them as both an equity and debt holder. At that point we would be more likely to let then buy some remaining debt at a future date for a discounted amount only because it flows back as increased value of our equity. YLO is happy because total debt has been greatly reduced and deadlines extended....and life goes on in the merry ole' land of Yellow.
As you can see all problems are solved but yes, the present shareholders are SOL. Given that scenario would make everyone who has a say in the matter, happy...and the only ones who would not be happy are those that the law says have no say, then what are the odds that this will happen as it has happened 100's of times before? Those who do not learn from history are destined to repeat it.