RE:RE:RE:RE:RE:RE:RE:RE:RE:The deal is economic by ripping off the debenture holdersPetroExplorer wrote: Good points Pants. Actually I reviewed the old news releases, and found they changed the offer from 12.5 common shares, to 50 common shares, and the change happened just two days before the meeting. So there must have been some last minute negotiations.
The main point about that deal, was it wasn't a cash buyout at the bottom, but they were given shares and warrants, which would allow them some chance of recovering their investments in the future, unlike the TBE deal, which just allows alot of losses to be crystallized now, without any chance of some recovery.
The Yellow Pages Fiasco was a CCAA Re-capitalization not a Takeover.
A group of Retail and Institutional Yellow Pages Convertible Debenture holders hired a Law Firm to represent them at their cost on a prorated basis.
They took the Financial Risk of paying Legal Fees for an uncertain result.
As it turned out they were successful and their Legal Fees were covered by the Company.
Their VALID issue was that their Ranking in the Capital Structure (ahead of the Preferred and Common Shareholders) was not respected in the original offer which is exactly what is happening with this TBE offer.
The problem is that the Shareholders are represented by the Company and their Legal Team, the Lenders have their Legal Teams and the Convertible Debenture holders are left to fend for themselves.
The reality is that unless a group of Institutional and/or large Retail TBE.DB holders are willing to put up and Risk the cash to fund a Legal challenge to the TBE offer there won’t be one.
As Always; Do Your Own Due Diligence; It’s Your Money !!