RE:RE:RE:RE:RE:RE:Read the info circular 2020oilgamble wrote:
As for the debenture holders, they get somewhere btw 20 and 56% of the company depending on whether they take advantage of the subscription. Based on the $1.2 billion assets that's 100% of the value of their debentures, with a sweetheart subscription offer, allowing them upside from keeping JE in business. 100% is a far cry from the 45% offered with the other company you reference where they held out and fought for what 66%?
It depends on what you think the new corp will be worth.
If you put the share price at $3.41 post re-arrangement, the debentures only get $122 per $1000. For the debentures to get 100% of their cash back, the new shares would need to be $27.95. If the debenture holders buy all their "options", then they need a share price of $12.90 to receive 100% post arrangement.
So there's a lot of risk in the deal based on the trading price of shares post arrangement. If the shares trade at $3.41, the debenture holders will have 12% of the value of their debentures only. If the shares trade under $3.41 and they bought extra shares, then they also make a loss in their reinvestment. If they fully buy their outstanding shares, they still need the share prices to be $12.90 to get 100% value.