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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by DoubleIndemnityon Dec 06, 2012 6:42pm
153 Views
Post# 20695280

RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: No 30 days

RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: No 30 days

BlueCollar51, I'm not sure what point you are making. I'll concede that exchanging Pref A for common shares is only allowed "subject to applicable law and to regulatory approval". But this only matters if you think that Yellow Media doing exactly what the prospectus says they can do would somehow violate either the law or TSX regulations. I can't come up with any reason for thinking that.

 

You mention a solvency test for redemptions and repurchases, but exchanging one piece of paper (Pref A share) for 12.5 pieces of paper (common shares) would make no difference to YLO's solvency. A redemption for cash could violate this rule, but not an exchange for shares.

 

My point was that YLO could easily (and legally) have made the Pref A liability disappear. If this zombie liability rises from the grave and threatens the interests of Yellow Media creditors solely due to bizarre decisions by YLO's management and board, the directors should expect legal action.

 

By the way, lots of people on this board are making noise about possible lawsuits if the deal is approved. I don't see that. Any party who objected to the deal had an excellent opportunity to hire a lawyer and fight the deal. The only party who did so is the banking syndicate (and the convertible debenture holders, who settled for a slight improvement in the deal). Everyone who dislikes the deal but didn't do anything about it is just making noise.

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