RE:T O R S T A R : A LIKELY FILING FOR BANKRUPTCYHi modulex,
I will give you my best future forecast for Torstar:
- They will cut the annual dividend to 7.5 cents to stay onside with the provision that converts all of the B shares into voting A shares;
- When the cash is depleted they will cut the dividend to zero with the hope they can avert the conversion provision;
- When that manoeuvre fails they will go to Fairfax on bended knee to find a graceful exit;
- Fairfax will find a way to give the appearance that the Voting Trust has some influence, but it will be window-dressing;
- Fairfax will pay a reasonable price to all shareholders and manage these assets in a far more enlightened and responsible manner than the current gang of incompetents.
Not sure how long this is going to take to play out. Honderich is the wildcard and he will have to come to terms with the inevitability of this outcome. He is stubborn and believes he is the only one that can save the day. His day has come and gone and hopefully, he will realize this sooner than later.
Long-term investors should stay the course.