TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Mar 25, 2024 5:45pm
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Post# 35951673
RE:RE:I decided now to Delete the information I provided
RE:RE:I decided now to Delete the information I provided SONOFFERGUS you are correct
BPO was privatized by Brookfield Property Partners (BPY) in 2016 and its preferred shares became backed by a “full and unconditional guarantee” from BPY.
BPY is not guaranteed by Brookfield Corporation (BN). The same question was asked from 5i Research
5i Research Answer:
BN does not have a legal obligation to the preferreds. That being said, a default on these shares would be very detrimental to the group's overall investor confidence, and we would assume the parent would support them, but only up to a point. If things got so bad that the parent company's solvency was in question, we are quite sure Brookfield would abandon them in order to protect the mother ship. But, two comments on that: First, things would have to get absolutely exceptionally bad to envision such a scenario. Two, Brookfield can be masters of financial restructuring. We are sure it could come up with some sort of equity swap or other arrangement to save the preferreds before it got to such dire measures.