RE:RE:Zero equity value BluSky23 wrote: This is the likely outcome, so why did the unsecured kill the deal on the table?
The banks killed the deal. They know that they can still get their money out of the sale of the assets and more importantly for the long term, they will be able to float the paper of the acquirer of those LTS assets.
LTS management will do all right too because the court appointed Monitor will richly reward them with a KERP bonus, which is a Key Employee Retention Plan, above and beyond their normal salary. And finally, lets not forget about the court appointed Monitor. They will make sure that no extra monies are left after the bankers get paid!
So, what you now have are the bankers, LTS management and the Monitor carving up for themselves what is left of the LTS carcass. The unsecured creditors and the shareholders will get screwed.
Folks, you are now about to witness the newest Canadian get rich scheme, force a company into CCAA Protection and then with the full approval of the court, allow those still involved to fully reap the rewards. If you thought that the Alberta judiciary was bad when it comes to understanding Criminal Law, you are about to get a surprise as to how bad they really are when it comes to overseeing CCAA Protection Proceedings and a subsequent Plan of Arrangement.
I must say, it's good work if you can find it!
Kherson