TSXV:PAR.H - Post by User
Post by
stockbabyon Oct 20, 2013 10:52pm
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Post# 21832255
One Final thought, for Monday morning!!!!!!!!!!!!
One Final thought, for Monday morning!!!!!!!!!!!!One last summary of the facts:
The assets of League Management, et al are not part of our trust. This is a clear fact in all of the legal information being filled with the courts.
Their 15% interest, worth say $23Million probably yields between 8% and 9%.............this is still a terrific return, and as such it will be sought after by many investors, there is no need to "Dump"...................quite frankly the REIT can purchase it back by issuing say, 63/4% debentures or the sale of new units to take out the old.............the solutions are many...........it goes on and on...................this is a valuable investment, that will not be abused.........................
During the CCAA protection, the existing management contract stays in place. Given that League needs cash, I am sure that a favourable deal can be made, to purchase back the units into treasury on the condition that the Management Contract be terminated, this should be a cake walk.
The effect on the unit price on Monday?? In my opinion the price should jump up since our REIT is holding all of the cards and it is a viable entity that has the ability to raise new equity.