Lanesborough Real Estate Investment Trust V.LRT.UN

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:8 Hours to the Next Postponement

[Cbcdistressed]

quicksilver545 wrote: Why would they refuse? I think the better question, is why would they accept?

As an example, the debentures were worth 33 million, and were converted into units at 5 cents a piece (and not lower, because the TSXV woudn't issue units below 5 cents. Didn't really matter as that diluted the existing unitholders into oblivion already, so whether it's 96% or 98% dilution really means nothing)

Now what do we have for it? Going from 20 million sharecount to 680 million sharecount, and market cap change from 400K  to 3.4 million (only holds here due to minimum bid price). So the market is valuing equity at 3.4 million. The debenture debt held a carrying value of 33 million. So 10% debt to equity valuation.

Why would the revolving creditline debtholders, trade their 100 million in debt for maaaybe 10 million in equity? Doing so they would give up 90% of their debt claim, and lose their position as secured creditors in a default event? Makes no sense. 

I suspect that in the coming quarters, the balance sheet will start to look a lot more attractive. They have been sandbagging the assets, so I hope we see that change.

What I suspect they will try and do is suppress the stock price, in order to keep the VWAP as low as possible, in anticipation of a takover offer for as low as possible. That way, they can say their low over represents some small premium over the VWP. I suspect they will reverse split soon, so that they can continue to lower the price.

I do wonder about the volume, as there was 27 million on monday, and about half a million today. As has been mentioned, might be that someone is trying to accumulate before a takeover offer is presented. 

The quarter financials I think will be critical for the direction on the stock. Elimination of 33 million in debt, oil price increases, and hopefully real estate recovery, should all bode well. The one headwind is rising interest rates, which will have an effect on the variable mortgage bonds. Looks like most of the bonds are fixed, which is good.



Anyways, that's just my thoughts. I don't trust this management whatsoever to act in our best interests. I think I am now one of the largest unitholders, so am interested to protect our interests and work with other large holders to fight against management. hit me up in private messaging if you like. 

if they want the bigger potential for the ultimate recovery in fort Mac they will convert the 100 million. If they dont then, keep the debt and raise the interest rate and keep sucking the company dry.