Fortress Global Enterprises Inc - Class A FTPLF

155 million shares would roughly need to be issued to repay

[HCI_STEEL]

the debs.

Just a quick check, I see "$62,100,000 principal amount of 7.0% Debentures remain issued and outstanding.
Read more at https://stockhouse.com/news/press-releases/2016/08/19/fortress-paper-announces-completion-of-purchases-under-normal-course-issuer-bid#E03l244pc8PCtQuc.99"

So if they repaid that in shares ~40c they would issue 155 million shares, just as a rough example. There are currently ~20 million shares. 

So you can see how quickly existing shareholders would be diluted. Left with ~12.9% of the company. Aside from them owing 105M to iq.

[HCI_STEEL]

Correction 15M shares os. So existing shareholders would own 10% of the company after a deb repayment. Unless they can come up with ~167 million dollars, all they've done is delayed the inevitable 

[Contrarian333]

You have assumed that the dissolving pulp price remains depressed at multi level lows for another 2.5 years. You have also assumed no further improvements to the balance sheet. The torque in the operating results and cash generation is significant.  I expect to see further developments and I also expect to see the CEO buying a lot of stock to fulfil his employment contract obligations.

[nkbourbaki]

The debs aren't due for 2.5 years.  Why are you making your calculations as if they're going to pay them off next week by issuing shares at today's market price?? The current worries are short term IMO, primarily the June 30 interest payment and their immediate working capital needs.  Presumably, operating conditions are better now than in Jan through April -- though I'm

[HCI_STEEL]

As I noted, I own an number of debs, over the last 25 years. I've encountered a few times where the company decides even the interest payments hanging over them is a burden so they covert the debs (and interest) into shares. Toscana energy did it recently. They tried intitally revising terms  and then finally just threw in the towel and converted. I ended up with hundreds of thousands of

[nkbourbaki]

Fair enough.  But I think the situation here is fairly different from Toscana.  From a cash perspective it doesn't make much sense for them to go nuclear at this point, particularly if they can figure their way around the upcoming interest payment. The interest is only $6m per year and they should have a much improved 2nd half. BUT... As it stands, it would seem that the debs

[HCI_STEEL]

From original prospectus” Payment upon Redemption or Maturity: by 95% of the volume weighted average trading price of the Common Shares on the TSX for the 20 consecutive trading days ending on the fifth trading day preceding the date fixed for redemption or the Maturity Date, as the case may be. Any accrued and unpaid interest thereon will be paid in cash. See "Details of the

[nkbourbaki]

From Section 1.2(d) of the Second Supplemental Indenture, posted to SEDAR on Oct 11, 2018: "In connection with the redemption of the 9.75% Convertible Debentures, the Corporation may, at its option and subject to the provisions of Section 4.6 of the Indenture and subject to regulatory or stock exchange approval, elect to satisfy its obligation to pay all or a portion of the aggregate

[Contrarian333]

Fortress will not create, incur, assume or permit to exist any Senior Indebtedness of Fortress. Notwithstanding the foregoing, this provision shall not operate to restrict: (i) the ability of Fortress to provide any Guarantee of indebtedness of any Subsidiary or affiliate; (ii) the incurrence of any Senior Indebtedness by any Subsidiary or affiliates of Fortress; (iii) the incurrence of

[HCI_STEEL]

Sneeeaaaaaaaky slipping that change in.