OTCQX:SREMF - Post by User
Comment by
Oregonduckon Apr 14, 2015 2:05pm
197 Views
Post# 23628348
RE:RE:The Plan
RE:RE:The PlanLadyJane: I haven't change my position at all. It is still my pertinent argument that NO COMPANY EVER EMERGES FROM CCAA PROCEEDINGS ALIVE because it will become a new company, post CCAA. This is not the same as normal debt restructuring. The Court sets the rules under CCAA proceedings. The "old" company will be gone. Creditors could convert their debts into equity and together with the new investors would take it over with nothing or barely nothing left for the former investors. I will challenge anyone to present a case whereby former shareholders of a public company ended up retaining all their shares after the company had exited from CCAA proceedings. That was my point. In the case of RBI, since the creditors have rejected the sealed bids, there are only 2 choices left (a) Go bankrupt and liquidate the assets or (b) Restructure by wiping out all or most of the existing shareholders' equity and allow the creditors to take it over under a new RBI structure.