TSX:RPR.DB - Post by User
Post by
Tree2treeon Nov 08, 2024 8:07am
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Post# 36302685
Misinformation
MisinformationIt looks like somebody is spreading misinformation (probably a poster that I ignored). Nobody can force conversion of debentures to equity. The only thing the creditors can force is bankruptcy and liquidation, but I don't think it's in their interest to do so. Even with the reduced book value, the debentures are still 100% in the green.
Agree with Northforce that the aggressive writedowns may be partly intended to put pressure on certain parties to make concessions (which can also be said of much of the language in the report). Also agree that debenture holders could be asked to take lower interest, which would not be hard to swallow if the face value is maintained.
The speculation on who is/was for further asset sales and who was against is interesting, but we will likely never know the whole story. In any case, it's probably true that it wouldn't be easy to sell enough properties quickly and at a great price to solve the debt issue. So like it or not, new financing is the way out.