RE: RE: RE: RE: RE: RE: RE: RE: yes Actually cash in the bank, ebitda and such DO MATTER. Reality is that companies that need creditor protection normally are in default, have been losing money from operations for more than one quarter and cant pay their current bills as they have come due. THAT is the reason for creditor protection, to protect the company from the vultures that they owe money to. IN YLO's case , the management is in bed with the vultures, and that money isnt due to be paid back for some time.
YLO showed 67.7 million $ in net earnings last Q, and is current on all their loans and liabilities , other than the suspended dividends on the preferred.
It is a real stretch to believe a judge would grant them CCAA given that they are still a going concern with positive cashflow, no defaults and a growing online business.
mouserman - Given the obvious validity of your remarks one has to wonder why things are the way they are. Yellow Media does have a bit of a track record of delivering bad surprises during their quarterly conference calls. Is there something else that hasn't been disclosed - speculation - some legal loophole is preventing conversion of the Preferred As & Bs? (I don't mean to side with lion on this, but was the failure to convert just a posturing exercise?)
It is entirely possible that no one is willing to trust Tellier and the Board of Directors right now? After all he just tried to shaft the banks and debenture holders to the benefit of the MTN holders. Is this just another case of it all coming back to Tellier's leadership.
The one unexpected thing was the indication that Tellier and the BOD seem to be "all in" on the recap proposal. I wonder if that means that they will resign if the recap plan is voted down.
Looking ahead, if they have to do a second recap plan, I'd expect it to be more fair toward the Banks and debenture holds but I expect they will try and take any benefit they put toward the bank and debenture holders from the equity holders as "a see I told you so" of what would happen if you voted no.
The way I'd like to see it go is the banks get 100% back and agree to extend $250K credit going forward. The MTN holders and the debenture holders get similar treatment but much less generous then the MTNs are being offered now and the equity holders get to retain ownership of 40-50% of the company.