GREY:BXEFF - Post by User
Post by
miketrikeon Oct 05, 2019 12:17am
332 Views
Post# 30199179
83.5% of shares are held by former note and debenture holder
83.5% of shares are held by former note and debenture holderI can't see the situation where these shareholders would agree to take a total loss on their investment. Management would have contacted these shareholders before any decisions were made. These shareholders must believe that liquidating the company assets will give them the greatest possible return. The 16.5% of other shareholders don't matter but the 83.5% of former note and debenture holders DO matter and they will only get their money back if the company makes a deal that benefits ALL shareholders.
Lots of stupid comments on these boards like the false Globe story about bankruptcy. If the 83.5% agree with the liquidation/ restructuring then it probably will net some cash back to shareholders, otherwise they would not have gone along with it.
"the Company’s previously outstanding 6.75% convertible debentures due 2021 in the aggregate principal amount of $50 million, plus all accrued and unpaid interest, have been exchanged for, in the aggregate and taking into account early consent consideration, new common shares of Bellatrix representing approximately 32.5% of the common shares of Bellatrix outstanding upon implementation of the Recapitalization Transaction"
"The Company’s previously outstanding 8.5% senior unsecured notes due 2020 (“Senior Unsecured Notes”) in the aggregate principal amount of approximately US$145.8 million, plus all accrued and unpaid interest, have been exchanged for, in the aggregate and taking into account early consent consideration, (i) approximately US$50 million of new second lien notes due September 2023 (the “New Second Lien Notes”), (ii) approximately US$54.8 million of new third lien notes due December 2023 (the “New Third Lien Notes”), and (iii) new common shares of Bellatrix representing approximately 51% of the common shares of Bellatrix outstanding upon implementation of the Recapitalization Transaction"
I am pretty sure that these shareholders are the ones that insisted on liquidating/restructuring. Management only cares about their paycheques so I can't see them wanting to possibly sell the company and lose their jobs!