Arcan Resources Ltd ARNBF

Very intriguing news release

[uograd]

Techncially the debenture holders are right.  They should get 100% on the dollar and common shareholders get paid after that.  However, I am sure the management here thought that considering the debentures were trading at .60 that moving them up to. 82 would make those holders fat, dumb and happy.

well they guessed wrong.  This deal has essentially now fallen apart which explains why the share price was going so low this morning.  I knew something was up but did not think it was this.

The debenture holders are saying the common stock is worth zero or close to zero.  the terms of the deal indicate this is probably correct

Could be a real free for all on Monday morning.

[teevee]

This situation is actually very straight forward. Although the debentures rank ahead of equity, they are unsecured. Crescent Point and Legacy own 33% of the stock. Provided they want the assets, and if they can make a deal with ARN's bankers, they will vote against the deal. If that happens, I would then expect the banks to call the line of credit, pushing ARN into default and bankruptcy. In

[filefish]

First of all, get the facts straight...its Lightstream, not Legacy. And CPG & LTS own 38% of the stock, not 33%. Second, all the scenarios you mention for ARN going into bankruptcy are pure speculation on your part.

[teevee]

First, thank you for the correction on Lightstream and ownership of CPG and LTS at 38%. Second, yes, my scenarios are speculation, however, how else would you suggest both companies better protect their investment than to vote against this deal, provided they also have a deal with the bankers? Additionally, and not discussed or considered; if they vote against this deal, why would CPG and LTS wait

[filefish]

Like many others here, I have been wating for 2 years for someone to offer to buy out ARN. Unfortunately, it happened after the stiuation got this desparate. I hope that with the value of an offer out there, LTS will come in with a better one, which will satisfy the bank lenders and  the debenture holders. At that point, Aspenleaf will have to at least match that, with or without Spinco. I

[mike49]

i finally got out 2 years ago. took frigging forever and a ton of trading fees bit i drank the cool-aid like everyone else.kinuso mud under my fingernails and some not so fond memories of hunt oil and a bubble bath in the fountain in swan hills got me in. EMOTIONAL INVESTING! not good. i digress-if someone wanted the field they would have bought it.we don't know who owns the debs(for real) so

[when2buy]

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