Sir Royalty Income Fund T.SRV.UN

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Statement from the Independent Trustees

[jcw604]

My question is that who can agree or disagree on this transaction? The SIR corp for its own interests should strive to perform their own best as far as running the restaurant is concerned and that is their role. The interesting thing about this proposal is that I suspect the owner of SIR happens to also own a lot of the fund units. Otherwise, why would he even have a say on this. The fund trustees even though should maintain good relationships with the SIR corp owner, they should be totally independent of him. Only the fund unit holders should be their boss. The fact that SIR wants to buyout the fund, it indicates they are not cash strapped, unless their lenders are banging on their doors, telling them that unless they managed to be freed from their contractual responsibility to the unit holders, they are not going to lend them any money. If you take a high level view of this transaction, it is basically a buying back of a promise that is written into a contract. The fee of 3.55 per unit is to appease the unit holders. If they managed to be free from that responsibility, not only that they can keep the money they had borrowed, they can even borrow more money so that they have enough to pay the appeasement fee to the unit holders. Obviously, after freeing from the contractual obligations to the unit holders, they have better credit score, even after taking on more debt.