Fortress Global Enterprises Inc - Class A FTPLF

Wrong calculation of Enterprise Value

[yyzinvestor]

Sculpin2 you've got the wrong Current Enterprise Value 

The Converts are $69mm and (if) they get converted at 'equity to principal amount''  Maybe at a 95% of principa discountl or $65.55MM .

Attached is the coverts secondary agreement 1.2(d).

The way I see this going down is equity goes zero or near zero. Either a buyer comes in and refinances or they wait the 24-36months of brankruptcy and buy the assets. The wait has it's own advantages and problems. The wait gives the pulp sector time to recover but they could attract other bidders and then they have to re-employ and everyone (under bad moral) . Plus it may open up long term hydro contacts as it is a new company and the old contracts could die going through bankruptcy. 

Remember those debentures that are being sold at 7 cents on the dollar are being bought buy investors who have the exact same information as everyone else, most likely more. Clearly the sellers are scared and the buyers know more. 

2.  The 9.75% Convertible Debentures will be redeemable in accordance with the terms of Article 4 of the Indenture. At any time up to the Maturity Date, the 9.75% Convertible Debentures may be redeemed in whole or in part from time to time at the option of the Corporation at a price equal to the principal amount thereof plus accrued and unpaid interest. The Redemption Notice for the 9.75% Convertible Debentures shall be substantially in the form of Schedule "B" to this Second Supplemental Indenture. 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 Redemption Price of the 9.75% Convertible Debentures to be redeemed by issuing and delivering to the holders of such 9.75% Convertible Debentures, such number of Freely Tradeable Common Shares as is obtained by dividing the principal amount of such 9.75% Convertible Debentures by 95% of the Current Market Price in effect on the Redemption Date. If the Corporation elects to exercise such option, it shall so specify and provide details in the Redemption Notice. Any accrued and unpaid interest on such 9.75% Convertible Debentures to be redeemed will be paid in cash.