Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

RE:RE:RE:BOOM BREAKING NEWS SLAM ADMITS WOES

[TVR]

Unless somebody (Armoyan or some other group) comes up with a proposal to fix things soon it is probably in the interest of both the lender group and SLAM to move  SOT.UN under the protection of a CCRA restructuring which buys some time and forces some action.  If that happens recovery for common shareholders is likely to be negligable given the high debt level and the settlement terms the variuos debt holders will require to aggree to a deal.  I do not see the debtholders agreeing to much of a haircut in this case.  If nothing could be agreed under  the CCRA process then it would become a formal bankuptcy process with the assets disposed of to settle the debt to the extent that is possible.

One of the big red flags to me was that the last quarter financials showed payables were $40 million higher than receivables which indicates the REIT does not have the cash to pay suppliers/services required to operate.  Hopefully a big chunk  of those payables are the money owed to SLAM under the management contract.