The Infamous CRV I hope everyone took a hard look at the CVR! It is just another way of achieving the same result as the dilution under a yes vote.
Under the CRV Tenor is awarded roughly a bit over 50% of any arbitration award and the "participants" a bit over 19%. Under the yes vote dilution the participant share would be about 29.2% (Amber 18.1% and Paulson 11.3%) based on their share holdings after dilution. On the surface it appears that we are doing better with the CRV and the participants somewhat worse at 19%. Along with the IFC, us and a few others we would appear have about 29% to share, the participants 19%.
Not so fast, the proposal by the board gives no detail other that Tenor and participants take of roughly 71%. I have asked and received no response as to the makeup of the remaining 29% and its distribution. It is incredibly important to us.
It is my guess that since there is no dilution that all 106 million or so outstanding shares will come into play. Since the participants currently control about 34.3% of outstanding shares (Amber 22.85% and Paulson 11.47%) when added to the 19% they are "awarded" from arbitration under the CRV their overall take again matches what they would have achieved under a yes vote. Since they hold 34.3% of outstanding shares that amounts to an additional 10% of the arbitration award bringing them back to their 29% threshold.
That leaves 19% of any arbitration award to be shared amongst roughly 70% of all remaing outstanding shares. That is us, IFC and directors and other investors. Amber and Paulson will collect about 29% of the arbitration while holding 34.3% of outstanding shares. The rest of us with 65.7%, twice as many shares, will collect 19% of the arbitration. You do not have to be a math whiz to conclude that if the participants receive a $1 return, we receive about 35 cents
Anyone thinking we would do better if we are forced into the CRV needs to give their head a shake. We can choose being shot or gassed. Both these options have to be off the table. The board must have truly thought we are stupid. The lack of transparancy and conspiracy to defraud us will be their undoing.