OTCPK:JENGQ - Post by User
Post by
HermannHalleron Aug 25, 2020 4:44pm
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Post# 31452333
Messy situation
Messy situationAs stated before, it was ridiculous to restructure a company and give so much to shareholders, relative to debtholders (debentures). And, ridiculous to announce a plan without having any of the debenture holders in agreement (nor the largest shareholders, as far as we know). The only possible justification is if they thought there was a buyer, who would be spurred to raise their bid when faced with the prospect of all this new equity being issued.
Now we have a mess. No buyer has come along, and the debenture holders are voting against the deal. They threatened that the alternative was bankrupcty, but of course no one wants that.
So what happens now? Do they announce a new structure, maybe debenture holders get 80% (instead of 57%), and we start the process (circular, planned meeting) all over again?
And what does any of this have to do with delaying the financial statements? Is one quarter so bad (or so good?) that it changes how people will vote on the restructuring?
They said an update is coming today...