Arcan Resources Ltd ARNBF

RE:RE:RE:RE:RE:RE:think about it......

[teevee]

I heard LTS was shouting their dissaproval at the annual meeting, vowing to vote against. If so, and CPG also votes against, then the deal is dead as combined, they hold about 38% of the stock (In this deal, debenture holders are at the mercy of a shareholder vote). IF that happens, the debentures go back to 50 cents on the dollar and drop from their as the company continues to deteriorate(this is why I believe the majority of debenture holders will be in favor). When the first series of debentures come due, then it gets really messy, because the effective change in control that would have to be held when paying the debenture holders with stock would require approval from shareholders. LTS and CPG would vote against this too because of the dilution. Then the only remaining avenue left would be for the banks to cut the line of credit enough to force the sale of the asset, and no doubt, LTS and perhaps CPG would be the main bidders, but at a very low price, leaving zero for shareholders and less than 50 cents on the dollar for debenture holders. I suppose ARN could accelerate the process if the deal is killed by suspending payments on the debentures....if this deal is killed, whatever happens won't be pretty for shareholders AND debenture holders. I have no exposure here, and the above is my opinion only. Good luck and best wishes for all who are exposed to this mess.