RE:RE:RE:RE:RE:RE:RE:News releaseWe seem to be going straight to bankrupcy, without having gone through some kind of CCAA process.
on
https://www.pwc.com/ca/en/car/what-is-ccaa.jhtml
I find this, among other things:
"The CCAA also allows a company, if it so chooses, to address its shareholders in addition to its creditors. Typically, when the shareholders of the company are impacted by the Plan of Arrangement, they are often given the opportunity to vote on the Plan."
Shareholders of CEZ might have forced a motion where only the debtors with respect to which convenants had been broken could get any money, through liquidation, while all leftovers would go to shareholders, after other priority obligations, such as those to non management employees, would have been met. I'm just guessing. Anybody here in law? It would be a mute point, at this point in anycase.
Sad p.s.: I am presuming that once a co. gets repossessed by creditors or creditor, it does not matter if the liquidation process yields more than what was owed to the creditor(s). It's all possessed by the creditor, at this point. The shareholders, at this point, got depossed. End.
Linguering question : directors resign. One creditor, to whom 16 mil. is owed, takes possession of collateral that was offered as guarantee against the loan. How can the directors to whom 10 mil. is owed get anything out of this? Do the bankrupcy laws now kick in to insure that second order creditors get the leftovers of liquidation?
thanks