RE:RE:Mininggeneral General - This is from your link. It is a last chance before bankruptcy, not a first step. The goal of the proposal is to avoid bankruptcy, which must be accepted by creditors and the court. Of course, RGX can sandbag the process and make an unacceptable proposal and go into default. If they didn't intend to get creditors satisfied, they simply would have saved the money and court costs and filed for bankruptcy directly. Let's not jump the gun. Getting ahead of the facts won't give us better returns. We need to see the proposal and then react. There is no gain in assuming what the proposal contains.
"A Notice of Intention to Make a Proposal (commonly referred to as "NOI") is a procedure under the Bankruptcy and Insolvency Act (“BIA”) that allows financially troubled corporations the opportunity to restructure their affairs. It is often the first stage of a restructuring process under the BIA, which allows a company to restructure its financial affairs, through a formal Proposal. The NOI/Proposal provides an opportunity for a company (also known as a “Debtor”) to avoid Bankruptcy and allows the creditors to receive some form of compensation for amounts owing to them by the company."
"Proposals can include an offer of shares of the company in exchange for the debt outstanding or a combination of cash and shares."
"For the Proposal to be binding on each class of creditors, a majority of the proven creditors in that class, by number, together with 2/3 of the proven creditors in that class by dollar value, must vote to approve or accept the Proposal presented to them. If a class of creditors approves or accepts the Proposal, it is binding on all creditors within the class, subject to the Court's approval. Upon Court approval, the company continues forward as outlined under the Proposal until it has satisfied the requirements under the Proposal.
If a class of creditors rejects the proposal or the Court does not approve the Proposal, the company is deemed to have made an assignment in Bankruptcy and is automatically bankrupt."