RE:RE:RE:The smart thing for 2668921 Manitoba to do
Isyckle wrote: Since the change in accounting method, the accounting as been diminishing the assets value as negative" Fair value adjustments" been going on since 2017.
The asset value doesn't reflect the market price of the assets, but the pure financial performance of buildings and unit as money making machines.
Few years back, fire broke out where they hold most of the real estate, making the tenants leave for a while with construction and everything. Also, job market in Fort isnt as good as it used to,
therefore revenues were less than they were before.
The trust makes money, assets at market price are valuable, but on paper it seems like a bad investment.
Keyword: On Paper
And this is exactly why they followed closely behind fellow Winnipeg-based company Lakeview Hotel Investment Corp in low-balling the debenture-holders to get the company on the cheap.
Big differencebetween the two as I recall is that Lakeview directors were continually buying the debt on the cheap. Not sure if that was happening here or not. Haven'tseen any SEDI filings to indicate that was the case as was the case with Lakeview.
What gets me going is the arrogancy from Lanesborough/Shelter/2668921 Manitoba management that they are not sharing in the restructuring that they expect debentureholders to shoulder the negative taxable implications that they themselves are not willing to do as well.
Personally I hope some company with rental properties in Ft McMurray and area (companies like Boardwalk or Yorkton) decide to take a closer look at the opportunity provided by Lansborough - similar to what Melcor did with 2668921's former public company Temple Hotels a couple years ago.