Link between vote and survival of LREIT is scare tacticA no vote is simply a vote against a proposal that weakens debentureholders. It does not force Lanesborough into liquidation mode (although anything is possible, I guess). Much more likely, I believe, is that we debentureholders would be offered a better deal, one we might even want to accept.
At least three times in the past, the Series G debentures have faced impending due dates and have never had to resort to conversion into shares. Always in the past, agreeable terms were offered which inticed holders to approve a due date extension.
One time, in 2011, the debentureholders received significant sweeteners to vote for a due date extension, including raising the interest rate on the debentures from 7.5% to 9.5%. More recently, in 2016, insiders made significant concessions in order to have the due date extended on favourable terms: Insider-related company 2668921Manitoba Ltd.reduced the annual interest it was charging LREIT from 12.00% per annum to 5.00%.
That said, I'm more than okay with a strategic alternative process, if the end result is that we get something better than a mountain of wallpaper.
If you want to see the details of the past due date extensions, I've included links to the press releases:
https://www.lreit.com/pdf/pressreleases/Press%20Release%20-%20Sept%2022%2011.pdf https://lreit.com/pdf/pressreleases/Press%20Release%20-%20June%2016%2014.pdf https://lreit.com/pdf/pressreleases/Press%20Release%20-%20May%2012%2016.pdf