FormerXBC Inc XEBEQ

RE:RE:Some Hopeful Info For Shareholders re. CCAA

[AlwaysLong683]

Gann999 wrote: Despite all of this the "plan" though it can include shareholders is being decided by the company and national bank who has the company right where it wants them by the balls. So we have a company with new management and no significant skin in the game and national who has xebec by the balls and is "advisor" slash owner of the entire process and completely protected from any litigation by common shareholders who stand to lose everything and have zero say in what happens throughout the process or input into the "plan" moving forward. This is all mind you conveniently timed just mere months before the company is projected to have some cashflow coming in. This whole thing reeks badly of criminality insider trading and intentional incompetence. Somebody should be getting charged but instead they collect cheques so disgusted with this company now

I agree my post doesn't offer much in terms of shareholder influence. However, there is another piece to the process that has a possible but remote chance of saving existing shareholders from ending up with nothing, again contingent on creditor approval (from the PwC article mentioned in a previous post of mine):

"The Plan of Arrangement is the proposal that the company is presenting to its creditors on how it intends to deal with debt it owes at the time of the initial filing with the Court. There are no restrictions on what the Plan can entail. It is not uncommon to see offers to pay a percentage on the dollar of debt, either as a lump sum or over a period of time. Plans can include an offer of shares of the company in exchange for the debt outstanding or a combination of cash and shares. The debtor can identify a particular creditor or group of creditors as "unaffected." Unaffected creditors are included in the Plan and are not to be paid in the normal course. One of the benefits of the CCAA is that it allows for this flexibility when trying to put together a Plan."

Assuming the "shares" mentioned above would be additional existing common shares (which I suspect is the case) and not a new share issue after the existing shares are deemed worthless, this would be an option creditors could consider if they feel confident in the company going forward. Perhaps part of the Plan could also include creditors insisting the CEO and/or Board Member(s) be replaced with individuals in which creditors are more confident and are willing to give them a shot at solving the mess.....?

As Yogi Berra famously stated: "It ain't over 'til it's over". No, I'm not turning into a Marcello clone as I think it's highly likely that the company will either enter bankruptcy proceedings with creditors ending up receiving less than they are owed, or a restructured company coming out of CCAA but with existing common shares being worthless and new commons shares issued (as I believe I stated in one or more previous posts of mine).

In any event, I wish the company and existing shareholders luck as it would be a shame if the company went under, employees lost their jobs, and existing shareholders ended up with worthless shares.