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DOMINION CITRUS INCOME FUND T.DOM.UN

"Dominion Citrus Income Fund provides an integrated suite of services for fresh produce. It offers finance, reporting and insurance, procurement, international logistics, ripening, sorting and grading, packaging and re-packing services."


TSX:DOM.UN - Post by User

Comment by ob1knobon Jan 17, 2013 1:02pm
88 Views
Post# 20851802

RE: Dominion preferred stock

RE: Dominion preferred stock

You initiated a discussion regarding the perferred shares about this time last year. Read the old replies.

 

I think the best bet for you is to phone the company and ask these questions. 

 

My personal thought is that the perferred shares are not worth the paper they are written upon. The Common Shares of Dominion Citrus are also worthless in my opinion. The only thing of value is the note held by Dominion Citrus Income Fund, that was issued by Dominion Citrus oporating company when this whole construct was created.

Again, my thoughts are that managment should look at a re-org of the structure where all assest of the company are taken by the trust in payment of the debt owed. In turn, the trust to "Incorporate" and issue common shares to the trust unit holders. This would wipe out the current "Common"; as well as, the rights of the Perferred. The new Common would then be clear of all obligations.

 

Again, my perspective, a number of difficult things happend while being managed by the guy who left. Not often you see an insurance company pay out due to management difficulties but they did. To think much was left to divide up between the outstanding debt, perferred and common of the corporation is like sticking your head in the sand and pertending all your troubles are going to go away.

 

My understanding is the current management group have stabalized things but time is needed. 

 

If your poking around to figure out if the perferred are an easy capital gain then well my thought is, and I'm betting that.... they are worthless. I've bought more trust units at the tail end of 2012. 

 

I've no special insight on the issue. Management will only say (to me) that they have to work something out by April. Beyond that they give little clarity of just what will be worked out. Sad thing is, and I learnt this sitting in the AGM, most of the current management, directors and other large holders of the trust units were also holders of the perferred. So, me spouting off my thoughts (and I did in full knowlege of the perferred holders in the room) were received and noted. They are receptive of the fact that the company has had difficulties and it will be a difficult issue to deal with. My hope is that Blair watches then like a hawk and takes them to task if the slip up. Blair said he would be watching them at the AGM, so, whatever they do, I'm thinking it will be legal and above board passing audit and all that.

 

all above, IMHO.

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