TSX:BPO.PR.A - Post by User
Comment by
Carenaon Mar 26, 2024 9:17pm
165 Views
Post# 35954431
RE:RE:RE:RE:BN controls 100% of BPY. BPY made the Guarantee, not
RE:RE:RE:RE:BN controls 100% of BPY. BPY made the Guarantee, notHi again Sonoffergus,
Yes, my thesis is BN will never punt BPY...full stop! I have no idea what unbearable is? My thesis is that unbearable will never come. Otherwise I would be long gone from the BPO prefs.
However, BN letting the junk rating happen was the first time I said in my posts that I had "less conviction" in the BPO prefs and therefore, my thesis. My antennas are squarely up now and have been since about Dec 21, 2023.
On this continuing guarantee.....
BPY is a public entity today with independent board members. BPY has publicly listed debt and publicly listed preferred shares. It is up to this board to hold accountable (ie governance) management or whoever to protect our BPO property under the terms of the guarantee. We as BPO pref holders have been told to look to BPY and thats it. However, if BPY repays all its public debt (including its subs like BPO) and repurchases or redeems all its pref shares (including BPO's) then it becomes a truly private company!
Stealing? For example...lets say the interco transfer you suggested. If BN instructs the BPY CFO to characterize an interco transfer as an expense when it in fact it is a loan. If this this happens over and over such that BPY goes insolvent, we seriously think our best recourse is through the continuing guarantee. Really?
So I think I now got it. Crazy thinks BPY is a private company. Only the common shares/units were privatized. BPY is a PUBLIC company. The SEC does not give a hoot about the continuing guarantee. The SEC is looking to the Board and Management to protect the interests of all BPY public stakeholders. Bruce Flatt loves this arrangement/structure!
Crazy is actually not looking to the continuing guarantee but rather his investment thesis is his reliance on independent board members to protect his interest? Good luck with that. The continuing guarantee has nothing to do with BN.
Have a great night and hopefully this makes sense,
Carena