Post by
teevee on Jul 02, 2014 9:30pm
where will debentures trade after vote?
If the proposal is voted down, debentures will go back to where the market believes residual value is, and where they traded before the proposal, which is about 50 cents on the dollar. Where debentures trade is implies stock worth zero, so shareholders, other than CPG and LTS will vote in favor. Will debenture holders vote to shoot themselves in the foot? I doubt it, as they are trading as if this is a done deal. If CPG and LTS vote against, killing the proposal, debentures will go back to half price.
Comment by
jd43xl on Jul 03, 2014 7:34am
The debs may fall back in price, but the commons will be doomed. In the end, the debentures will get paid first, and common shareholders will get what is left over, if anything. But at this point, neither one is a good investment.
Comment by
rad10 on Jul 03, 2014 10:21pm
I hope they hit all time lows ! - I will be backing up the truck and doubling down if they do! Very comfortable that both of these issues are well covered with the assets. IF anyone wants them at parity - we can certainly start looking out for other opportunities. Cheers and good luck Rad 10
Comment by
smithgee on Jul 07, 2014 12:18pm
RBC wants out bad this morning ... dumping at .27 now.