JDC - FALLON CAPITAL MANAGEMENTAs part of JDC’s bankruptcy restructuring plan - it appears Farallon Capital Managment has been engaged (‘sponsor’) with the goal of reorganizing JDC’s business with a stronger financial base and maximizing payments to creditors.
As part of the arrangement, the sponsor (Fallon) will cancel all outstanding JDC shares and issue new shares to increase capital. The sponsor will effectively become the new shareholder of JDC. Note, Fallon Capital has $25B of assets under management.
If the SEDI link is up to date - Fallon will inherent roughly 14,626,264 shares of CGX. Roughly 5% on a fully diluted basis including exercise of existing warrants.
It will be interesting to see how all of this will impact JDC’s future equity position in CGX. In particular, is Fallon now a long term equity investor in CGX? Or, will Fallon/JDC look to sell their equity position in CGX? If so - when and to whom?
in my humble opinion, JDC’s strategy of selling CGX shares in the open market may be done. As a CGX shareholder, I would hope Fallon takes an approach that would allow it to maximize value of the CGX shares they presently own.
Also note - it is mentioned in JDC’s Oct 11, 2018 written report debt exceeded assets by approximately by 16.4B Yen (or $150MM).
Depending on how Fallon plays their cards - they could make a significant return on their investment given by their equity position in the CGX alone.
CNPC equity investment in CGX still in the background somewhere - will be a matter of time before the plan is unveiled...