RE:RE:RE:Share price valueOne can only hope they are not stupid enough to try such a thing. People have wound up dead for far less.
Pierre, or anyone else, are you aware of any case in U.S. or Canada wherein the controlling shareholder mismanaged the company to the point of restructuring, and then attempted to buy the assets in liquidation? If so, what happened in court challenges?
Jim
pierrelebel wrote: DunceMonk asked "...if bomber goes under, what happens to bomber's customer, employees with their pension?"
That question has been answered before.
Should Bombardier Inc file for protection under CCAA (equivalent to US Charter 11), the assets are sold and the company continues to exist, still has employees, the industry survives.
The difference is that the debt holders will take a hair cut and have to settle to renegotiate the amounts due to them, the interest paid. They may have to convert some of their debt into new equity.
Proceeds from the sale of asets are used to pay liabilities, including pension liabilities. Employees may have to renegotiate their labour agreement (with lower wages/benefits). Suppliers may have to accept cents in the dollar for outstanding payables.
Many companies in financial difficulties go into restructure every year. It is not the end of the world for most companies.
Tough pill to swallow for shareholders. The Bombardier/Beaudoin family currently owns about 300 million dollars in equity. That would go away. However, I expect the family would be interested in bidding for BA and take it "private" out of the restructure proceedings.