RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Further Improved Bond BidAll very interesting but I'm interested in sherritt for its nickel production exposure. There are junior explorers that pop up for every element in the periodic table if it gets popular like Ni, but there are virtually no public producers to invest in that will benefit from high prices for the next few years at least. I ain't buying a Russian producer that's for sure, even if Cuba is not much better, it sure is today. So what you got on S or Ni that's not about the debt of my granny's dress shop? I doubt anyone else here cares about the shyster and Shylock machinations of a CCAA process. Make a good half hour tv episode for somebody. Reitmans crowd might enjoy a perry mason or matlock episode.
Contrarian333 wrote: It is situation dependant. In the case of RET.A. the creditors were landlords and suppliers. Right from the beginning the CFO was telling me that dilution of common shareholders was not something they were considering. However, sometimes these "considerations" can be thrust upon a Company by aggressive bondholders. In this case, the Monitor recommended that creditors accept the deal of some 50 odd cents on the $1.00 even though the Monitor conceded that those same creditors could achieve a higher payout in liquidation. The rational was that in liquidation there would be no more Reitman's and therefore no more tenant for the landlord and no more customer for the supplier (not to mention many unemployeed). In my review of the situation I noted that the creditors were a disparate group, many international with no sharks in the mix. The creditors overhwhelmingly supported the proposal. As this was unfolding one could buy the equity at around 50 cents. On a successful vote and outstanding operating and financial results (Company used the bankrupcty process to rid themselves of unwanted leases, lines of business, etc.) the share price shot up to about $2.40 before going quiet (year end results April 21). Too cheap! Having successfully reorganized there is nothing in its immediate future to kill it. Should it trade at 15X earnings? No, of course not. But it probably shouldn't trade at 1X cash flow either. Cash, cash flow, and real estate!