GREY:TBTEF - Post by User
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HCI_STEELon Jul 05, 2016 8:22pm
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Post# 25025494
RE:RE:RE:RE:Mail Strike Great News
RE:RE:RE:RE:Mail Strike Great NewsNuWaveInc45566 wrote: I don't disagree that TBE is going for way less than it is worth. PDP at YE2015 and Jan strip was $240MM (which is more than EV of this deal). The avg LDMR area deal was for $24K/flowing which is $7K/flowing higher than Reignwoods offer ($102MM of total EV left on the table). I don't argue that at all.
The point I would counter with is this; CCAA or Bank takeover are the ONLY two courses of action if we vote NO. In both those cases, all the Shares/Debs you have now - expect them to be worth $0.
TBE still owes the banks $85MM and are being charged what...around 14% interest on that loan. This isn't going to magically disappear with a No vote so that they can renegotiate!!
No vote = CCAA = $0/share in my opinion...
1. The banks wan the maximum amount back in the easiest way.
2. Mgmt want their jobs
3. It is in both their interests to make sure Deb holders get a bigger piece. Shareholders aren't entittled to one penny if the Deb holders don't get repaid in full, but deb holders won't get paid in full, but certainly more than 140.00 per 1000.00 face