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Bullboard - Stock Discussion Forum KGIC Inc LGLTF

Consumer Defensive Education & Training Services

"KGIC Inc is an educational organization based in Canada. The company owns and operates private English as a second language school, career colleges and community colleges in Toronto, Vancouver, and Victoria."

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GREY:LGLTF - Post Discussion

KGIC Inc > KGIC is bought ? by MBA?

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Post by Yun321 on Jan 25, 2017 9:31pm

KGIC is bought ? by MBA?

CIBT buys $12-million debt, closes $2-million placement

2017-01-25 20:37 ET - News Release

Mr. Toby Chu reports

CIBT REPORTS PURCHASE OF SENIOR SECURED DEBT, COMPLETION OF PRIVATE PLACEMENT & SUSPENSION OF SHARE BUY-BACK

A subsidiary of CIBT Education Group Inc. has completed a debt assignment agreement to purchase from a Canadian bank approximately $12.3-million of secured debt for $3.1-million. The debt is owed to the bank by a group of colleges with 19 locations operating in British Columbia and Ontario. As a result of the debt assignment, the CIBT subsidiary replaces the bank as the debtor's senior secured creditor.

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Comment by reesespiecez on Jan 26, 2017 9:28am

Seems pretty likely that CIBT has now bought the debt. Given that they are an operating company in the same field this feels to me like the first concrete step toward converting the debt to equity and is a good sign for equityholders. Correct me if I'm wrong...

153

Comment by InternalAudit68 on Jan 26, 2017 9:47am

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Comment by reesespiecez on Jan 26, 2017 9:55am

The press release Yun referenced shows that CIBT bought ~$12mm of the senior debt of another provider from a bank (release very vague). They did not buy any equity nor did they buy sub debt. The amounts seem to match up and it feels very likely that this debt is the senior debt of KGIC.

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Comment by InternalAudit68 on Jan 26, 2017 10:12am

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Comment by InternalAudit68 on Jan 26, 2017 10:17am

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Comment by InternalAudit68 on Jan 26, 2017 10:32am

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Comment by InternalAudit68 on Jan 26, 2017 10:33am

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Comment by reesespiecez on Jan 26, 2017 10:42am

Definitely a possiblity that they force into receivership then scoop up the assets they want. Maybe just my optimism running amok but my first thought here was that CIBT would be a more motivated negotiator at the table trying to get the subs to convert and make this thing a real going concern again... wild speculation of course

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Comment by InternalAudit68 on Jan 26, 2017 10:52am

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Comment by Cadilac on Jan 26, 2017 1:00pm

I dont expect much from that deal but still I believe it s our last chance to save our a.s.s.e.s. , at least we will not lose it all .

82

Comment by InternalAudit68 on Jan 26, 2017 1:13pm

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