RE:RE:RE:Here is why.I just want to weigh in on one of your comments. It is my understanding that with this arrangement, an equity vote "is not necessarily required, but cannot be summarily dispensed with either" as per the Insolvency Institute. But you are probably correct in your statement that they have enough institutional holders on side - otherwise I think they would have filed under CCAA. From what I can tell - there is no easy exit under CBCA - and they can always flip to a CCAA if they don't get a favorable vote from what I understand. Anyways, I have covered my position for what its worth. Good luck to all.
meetoo1600 wrote: No unsecured debtholder will be taking any haircut. All of the current ones purchased their positions for cents on the dollar. Still, to protect however little they paid, they have to ensure that CXR does not fall to the senior secured creditors. They have to fear this just as much as the common shareholders do. Everyone below senior secured debt gets wiped out if that debt is given an opportunity to enforce.
By trading their illiquid and very weak debt (which they bought for next to nothing) for equity, they make it virtually certain that that will never happen, and they get both an uptick in value and immediate liquidity through the open market at whatever that value turns out to be. It makes total sense.
Oh, and don't forget... They cannot complete a plan of arrangement without a successful vote of the common equity holders. They are represented too. And my guess is that management already has enough institutional holders on side. They don't need you or me, and no one is listening to either of us anyway. If they were, you would see way more trading of the stock. As I mentioned in an earlier post, the bets -- right or wrong -- are already placed, and 98% of those holding the stock today are married to their positions.
One thing is clear: We're probably not waiting more than 10 days before we know.