RE:RE:RE:Right mngmt + privatization =huge potential for Bbd +profitsYou really need to think this out again.
Start by asking yourself why a debtholder is a debtholder and not a shareholder. Then ask yourself, if you were a debt holder, would you accept a 45 cent share as repayment of $1 USD?
Do you not think that if a debtholder wanted BBD shares, they would not just buy them for the current price?
The sort of thing you are suggesting happens in restructuring, when the company has no other options. We are not, at least in the near term, anywhere near that situation.
Jim
bbdaerospacecnd wrote: Shamhorish,
1. My previous post would explain the benefits for using shares as part of the debt repayment:
renegotiate the debt structure so that they use Bbd.b shares purchased on the open market as 10-30 % of the debt repayment but at the future price of $1.00-1.50 USD ?
for example: debt to be repaid is $1 bln usd = $800 mln in cash plus 200 mln Bbd.b shares purchased on the market at $0.30-50 usd but accepted by creditors at $1.00 usd value
benefits for Bbd and it's shareholders: reduction of Bbd.b shares float, providing sp support and significant cash savings
benefits for the creditors: 200 mln Bbd.b shares will appreciate to $1.50-2.50 USD in one to two years so they get paid back with a huge bonus
CDPQ could offer to take 40% with Bbd.b shares as part of debt repayment an excellent implicit way to support your own company and a great way to have huge returns in a couple years
'and , of course, refinancing to a low interest and a bridge loan with 0%
2. Depends on the buyout offer and your cost. I could only hope that the family would honour
the shareholders