DOMINION CITRUS INCOME FUND T.DOM.UN

RE:Blair deal?

[pmac2015]

I have all of the same questions you have and then some.  But note that DCIF the traded security that you own is basically just the 19 million notes of DCL. Blair is buying DCL common shares from DCIF which based on the valuation report have negative value.

There is also 3 Million of unpaid interest oweing on the notes in addition to the 19 million. Will that be paid out? 

The release makes reference to the valuation done by the third party company. That valuation basically says that DCL is worth negative 8 million. So I'm wondering if in Mr. Blair's proposal he asked the notes to be written down to a level that would make DCL solvent.. say 10 million? I don't know if that would be possible to do or not? 

Regarding the preferred shares, I can't see how they are not made whole at this point. If DCL common shares have value and the preferreds rank higher than they should be paid out before the common? That is my logic anyway. I don't see how they close the purposed transaction without settling the preferreds.  Maybe they have reached another settlement with the holders or maybe Blair is just going to take it on the chin and pay it all out.

My guess would be Mr. Blair's is thinking he can first eliminate a lot of the unneccesary costs of the trust structure and public accounting disclosures which might eliminate 1 to 1.5 Million a year in costs. Then hopefully the company would be solvent and able to service the debt owing the note holders. Then later on down the line he could sell DCL to a larger competitor who could realize even more value by eliminating sales/marketing and distribution costs.