GREY:STPJF - Post by User
Comment by
nikeherculeson Feb 26, 2015 12:23pm
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Post# 23468196
RE:RE:RE:RE:Affidavit: "...McKay and Senlac ...grossly mismanaged"
RE:RE:RE:RE:Affidavit: "...McKay and Senlac ...grossly mismanaged"
According to the second monitor report, it didn't sound like fixing Senlac & McKay could be done quickly during the con-call with McDaniel & the subordinated debtholders. The monitor states, "...there are no short to solutions or easy fixes available to address the Company's operational issues, particularly having regard to the costs involved and the stated timeframe for the potential improvements, which are well beyond what is contemplated in the SISP."
I think most long term STP bullboarders would agree with that.
The judge had to weigh the rights of the first lien against the subordinated debt. Can more value be extracted for the subordinated debt by delaying without significantly comprimising the rights of the first lien?
Alot of weight is put on the monitor's report (amicus curiae for you legal types), so the judge made the decision accordingly and disregarded Olser's Feb 8th letter accusing STP of gross mismanagement. The second monitor's report also refutes this and states "no evidence of gross mismanagement by the Company of its projects was identified by McDaniel (the independent engineering consultants)."
I dont' see any grounds to challenge the Queen's Bench decision in the Alberta Court of Appeals.
Wether more of the capital structure could have been salvaged with DIP financing from the subordinated debt is irrelevant for the judge. The time for that had already passed.
The 1st lien cat was let out of the bag with the CCAA filing.