TSX:SOT.DB - Post by User
Comment by
TVRon Aug 04, 2024 7:38pm
150 Views
Post# 36164075
RE:Armoyan wants CCAA
RE:Armoyan wants CCAAThe CCAA process allows a company some time to restructure its finances and make a proposal to creditors which may or may not be accepted. Pretty sure it does not give the company the right to void contracts such as management contracts and leases so CCAA would not impact the management contract with SLAM unless this was part of the creditor proposal and would almost certainly need SLAM to agree to eliminating the contract which seems unlikely. If a CCAA propsal was not accepted by one of the secured creditor groups it is likely the REIT would end up in a formal receivership/bankrupcy proceess in which the receiver could sell the REIT's assets without the liability of the management contract.