Ravelin Properties REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.RPR.UN

RE:RE:RE:Now that Armoyan has control I will evaluate his performance

[TVR]

BMS - Your assessment matches mine regarding the position of the debenture holders.  I had  experience of a couple of CCAA restructurings in the energy sector fifteen years ago. In both cases once the company was under CCAA an external party came in ith an offer to restructure and the debenture holders were reasonably well treated in terms of the equity they received for giving up their debentures.  I was a debentuire holder with debentures purchased at going out of business prices similar to where SOT.UN was a couple of months ago.  In both cases the shares offered were privateco, not exchange traded.  There were lengthy waits until the new shares were tradeable or saleable.  In one case the company was eventully sold and we received shares in the acquiring public company.  In the other, the company eventually went public through a reverse takeover.

If SOT.UN ends up in CCAA it could  be 3 or 5 years or more before debenture holders are able to actually sell any shares they receive if there is a debt to privateco share conversion.  The likelihood of equity unit holders receiving anything material in a CCAA restructuring is very low.  Unless Armoyan is a magician his equity position is probably toast if this goes to CCAA.

In both the cases I was involved in the debenture holders group voted down restructuring proposals made by management because they favoured management at the expense of the debenture holders.  This gave third parties the opportunity to structure an acceptable deal.  Voting down the management proposals effectively eliminated all management equity and also resulted in the senior management being dismissed once a third party came in.  Debenture holders effecively have a veto vote in these situations and my experience is they are not afraid to use it.

Time is running out with the cease trade deferral expiring just before Christmas, so likely to be some news in the next two weeks.