RE:Where Things Stand NowFootballFan1 wrote: 1) Legacy's press release dated April 23, 2015 stated "...Legacy and FrontFour have... agreed to a mutual standstill on proxy solicitation activities until May 25, 2015". Since this period has now expired, FrontFour could start a proxy fight at any time if they are not satisfied with negotiations to date. 2) The AGM is slated for June 30, 2015 - hard to see Trent Yanko and some/most board members remaining in place given that the Board allegedly backstopped a loan for Mr. Yanko when he and his wife faced a margin call for a sizable holding of shares in the company (would the Board do that for any other shareholder....?). 3) Hard to see them delaying the AGM date again - so in the next few days, I think the most likely outcome is either a sale of the entire company or capitulation of the existing Board and Mr. Yanko to most of FrontFour's demands.
1. The standstill agreement has ended today and Front Four has remained dead silent. Its possible they got an advance peak at where negotiations stand have have signed a confidentiallity agreement? In any case, if you read the NR carefully it states that Front Four only has until June 1 to put forward their own BOD, as that is the record date to vote at the AGM.
2. The BOD backstopped Trent because they wondered it he would take a buyout deal that wasn't in the best interests of the company so he could get out of his margin call. Its never a good idea to negotiate buyouts from a position of weakness, so I think the backstop was a good idea, providing they told him to sell the company/assets and remove the debt issues in short order.
3. The whole company is worth $6 a share today. $85,000 per flowing is fair for what they have and the debt position they are in. Trent could also sell some oil pools instead and eliminate all debt, that way he is in a stronger position going foward.
4. Trent is no dummy, sold his last company to CPG. Is it time for a repeat?