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Cash Store Financial Services Inc CSFS



NYSE:CSFS - Post by User

Comment by soberinvestoron Dec 13, 2013 11:49am
475 Views
Post# 22003333

RE:RE:Still something.....

RE:RE:Still something.....
Stelco didn't have negative equity, on the contrary 1.2 bilion equity on books when it went under bancuptcy protection arguing that it has pension plan deficiancy. I only cited Stelco in terms in my opinion being fixed for taking over booting all shareholders and some bond holder. I was only wondering if CSF is on similar track, to take it over for either free or pennies on a dollar. Stelco wasn't taken priwate, read below:

During 2005-07 steel industry consolidation and China’s high appetite for any steel made on the market Stelco was put in bankruptcy protection with 1.2 billion shareholder’s equity on books. All shareholders and some bondholders (with “unconditional and absolute” right to be paid) were given a boot. US vulture funds were given away about 27 million of “new shares” at $5.50/share for a total of about $150 million for 1.2 billion on books prior to going under bankruptcy protection. New CEO (brought from US) received as I remember 1 million shares at $5.50/share plus 1 million stock options/warrants at $5.50/share exercise price. At market opening shares were trading in range of $17/share. Year and a half later while posting about 300 million losses total those funds resold Stelco at $37.50/share (7 fold) to US Steel reiterating that they “created value”. Original booted shareholders and booted bondholders were never given a chance to take part in refinancing (at $5.50/share) of Stelco. The judge who conducted court proceeding retired after that case and as I heard received a lucrative post in a law firm that represented Stelco. This was an unprecedented case in the Canadian corporate system and Canadian corporate justice system history.
 
              
                                                                                                     


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