KGIC Inc LGLTF

KGIC is bought ? by MBA?

[Yun321]

 

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.

[reesespiecez]

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...

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[reesespiecez]

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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[reesespiecez]

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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[Cadilac]

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 .

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