RE:RE:Debenture ResolutionIf you read to the end of my earlier post on this subject you'll see that I don't ultimately think it's a tough decision either.
But in writing a post like that I want to do my best to approach the subject from an initial stance of impartiality. I want to make the best arguments I can for both sides of the question.
So you want to honestly wrestle with this. Is there any case where shareholders should want to vote YES? Can I visualize a situation where shareholders reject the Debenture Resolution and then events later unfold in such a way that people look back and think, "Gee, maybe it would have been better if we HAD approved it?"
The only scenario where I can see that being the case is where there is really ugly news coming, say, 1-3 months from now. You get the balance sheet cleaned up a bit in advance of the bad stuff hitting the fan (in return for a whack of dilution) and end up having thereby saved the company.
But then if that's a serious possibility . . . well . . . if a shareholder wanted to buy into this (very negative) path of thinking then it would make more sense to just get out immediately by selling the stock (and the debentures if they owned any).
So, yeah, at the end of the day I would say there are only two rational paths forward for shareholders who do not also own substantial amounts of the debentures:
(1) vote NO on the Debenture Resolution (i.e., if you believe in the company's future);
(2) sell your shares (i.e., if you do not believe in the company's future).
Something to think about for those "independent" directors who have recommended that shareholders approve the Debenture Resolution.