RE: Possisble Reasons Courts Could Reject the Reca list of reasons why the recap proposal could be rejected by the courts
- The re-cap proposal was rejected by the Debenture Holders
- The re-cap proposal was rejected by all 4 classes of Preferred share holder.
- The re-cap proposal was rejected by 2 of the 8 MTM holders
Since the company is not currently in default, plus won't be for at least 2 years (if ever), a sensible judge would realize the vote was rigged by lumping together dissimilar holders in order to push through the proposal. The reality is, there are 14 different classes so the vote should have been with all 14 classes voting separately and requireing all 14 to approve the re-cap. This was the CBCA process, which is voluntary, not the CCAA process.