Expedited to Facilitate Theft from Shareholders1. Reignwood tries to buy Twin Butte, by undercutting the Debenture Holders.
2. Debenture Holders block deal, as it was giving them a haircut.
3. Twin Butte Management doesn't try to sort things out with Debenture Holders in CCAA, which is technically what should have happened, months ago. Throws keys at the bank, without even trying to take the 10 day notice period. (Fighting the start of receivership, would have bought more time for the possibility that oil prices were to rise enough, which could give other parties the chance to get some financing to replace the National Bank line, or close to it.)
4. Sales process restarted with a tight timeline. Ad Hoc group wanted to make a credit bid, but needed to talk to other parties, to see what offers for property sales were available. Receiver refused. Ad Hoc didn't object to receivership process, just wanted it to be fair.
5. Phase II bid opening, closes on December 15th. Notice to bidders to "sharpen pencils" sent out, with short deadline of December 20th for final bids. Makes for a busy weekend, right before Christmas, to catch people off-guard, and prevent them from revising a bid. Ad Hoc group requests an extension, but is refused.
6. Quick sale conducted, flushing $738 million of share-owner capital down the drain, right before a rising oil price forecast starts. (Sale needed to be conducted quickly, before things gained more value.)
We'll have to wait and see what "substantial value to unsecured creditors" means. If it means "pay off the accounts payable, then shaft the Debenture Holders with 40 cents on the dollar", I would have to think that isn't substantial.
Only other option is a credit bid, backed by another going-concern company, that would then allow shareholders to buy-in to the deal. Difficult to combat the system, when the system is designed to sink you.