TSX:RPR.DB - Post by User
Comment by
pennylane101on Nov 08, 2024 7:58am
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Post# 36302672
RE:RE:The key paragraph
RE:RE:The key paragraphI suspect the past two quarter's writedowns were highly aggressive in order to reduce the BVPS and increase the probability of unit/deb holder acceptance of the offer that is coming.
If the units true BV is 5 (or 4 or 3) and GA manages to get X% additional equity at a fraction of that, then he ultimately turns his losses into a massive gain. He already has control of the assets, and could thereafter liquidate patiently for the best possible price.
This game plan would also explain GA's resistance to liquidation of assets as stated by the Welch bros. If the Welches were more successful in selling the assets, there would be no need for a capital injection, and therefore GA could not buy in per the prior paragraph.
Notice they have removed most of the assets that were stated as held for sale (MD&A page 19), supposedly due to difficulty selling them, possible such difficulty being the result of resistance by GA, again per the Welch bro's letter.
My thoughts EXACTLY after reading the F/S last night. No surprise that Armoyan looks out for Armoyan. Interesting how the news release comes across sunny and upbeat and then you read the notes to the F/S and an unmistakabe urge to run for exit takes over.