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

That was a day..

[Tree2tree]

..that could have gone either way, given the many uncertainties remaining.  The quarterly report was not a 'best case', and certainly not a 'worst case' situation.  We now have a better idea of SOT's survival plan, but we have to wait a little while longer to know how it will impact the share classes.
 
For fun, I'll stick my neck way out and take a wild guess at the final outcome:
  - Some additional asset sales to nibble away at the debt and reduce the scale of the challenge.
  - Capital raise of about $200 million through common shares at around 50 cents, most subscribed by GA and friends, but opened up to existing shareholders (or maybe they will be clever and do it at less cost).
  - ~400 million new common shares created, resulting in dilution like 6:1.  But the restructured and stablized SOT will then get credit for its asset value (including the new capital), so the common share price might stay about the same or increase a little in the short term.  Followed by appreciation if new management does a better job than old, and market conditions continue improving.
  - Possibility of something creative being done with the debentures, but given the positive asset value, debenture holders will not donate their shares to subsidize the common shareholders, especially GA himself.