Arcan Resources Ltd ARNBF

RE:RE:RE:Bad deal for convert debt holders

[vince2001]

Seems to me that equity owners are better off (same NAV/share but they now get a debt free company that should flourish provided management is competent); current ARCAN management is just as well off (they keep their jobs); but the debenture holder is giving up 17% in maturity value (cash and/or equity payment). Based on risk/reward, it seems to me that the debenture holders are getting a relatively poor deal. Disclosure: I have owned the 2016 convertible debenture since early 2011 and will be voting no to the current proposal.