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

RE:Armoyan wants CCAA

[rad10]

Northforce13 wrote: I reread the letter, I guess mulling it over in the back of the mind then rereading it made it clearer.

I think the probability that GA wants SOT to go the CCAA route is much higher than I previously thought. 

Much of what GA says relates to the asset management agreement.  It is clear this is the major point for him. 

That combined with his lack of activity to help the REIT seems to be like a 2 + 2, plus the lenders installing a legal firm, is anoither 2 + 2.

It seems probable he has a plan which involves the REIT going into CCAA which would allow it to terminate the asset management agreement.

How unit holders and debenture holders will ultimately be affected is a good question. 

Taking a step back, I think I would also conclude that getting rid of that asset management agreement is vital to the REITs long term health and survival.  

With all that being said, GA doesn't sound like an easy person to get along with.  The Welch's do appear to have ceded ground regularly, but it is probable that they will do everything they can to keep their cash cow asset management agreement in place and keep their milk cow alive so they can keep milking it for all its worth.

Certainly interesting times. 

 

wouldn't be too surprised to see this route taken.