RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: No 30 Blue, none of us are lawyers and the Yellow Media story has been so bizarre that it's hard to rule out any possibility.
But the conversion option in the PR.A and PR.B prospectus doesn't say Yellow Media can make this exchange if it's in deep financial trouble. It says that Yellow Media can make this exchange period. I don't see any way anyone could make a legal argument against conversion.
Under CBCA, the judge is supposed to consider fairness but it's unlikely he will find the deal is unfair to parties who sort-of voted for it (although they wouldn't have voted for it if the voting classes were arranged differently) and who didn't formaly object to the deal. His default assumption will probably be that the deal is fair to anyone who isn't in his courtroom arguing it's unfair.
My prediction remains: some version of the deal will be announced and approved by the judge before Dec 31.
If the deal goes throuigh, there will be no legal action. The banks could conceivably appeal, but I don't expect that - especially if the deal is modified in their favour.
If the deal doesn't go through, expect an immediate CCAA filing. This might take a couple of years to resolve itself, which is one reason I expect the judge will want to approve some version of a CBCA deal.
If by Dec 31 there is no CBCA deal and no CCAA filing, Yellow Media will have a big legal problem with the Pref A shares.