Lightstream Resources Ltd. LSTMF

What Shareholders might get

[Pancho2]

On Nov 3, 2016, the Q3 report stated

"The Company also obtained approval of our proposed sale procedures which are a continuation of the previously initiated sale and investment solicitation process that commenced on July 13, 2016. In accordance with the terms of the Support Agreement, the members of the Ad Hoc Committee submitted a credit bid (the "Secured Credit Bid") for the full amount of the claims outstanding in respect of the Secured Notes and debt in priority to the Secured Notes." 

The Q3 Balance Sheet states
 Liability subject to compromise was $1,337.05M ( $904M us of the Secured and unsecured Notes) and which was subsequently approved.
This amount will change based on the fluctuation of the cad /us exchange rate
from the end of Q3 to the approval date of the proposed sale procedures

Apparantly the secured Noteholders took over and paid off the unsecured holders , but we the old Shareholders will only get the agreed upon 2.25% of the new restructured Company and the remaing 97.75% will all go to the Secured Holders,
for their contribution of the $1,337.05M

The is only my understanding

[BluSky23]

This is my understanding as well. The credit bid would act as stalking horse bid, and as long as no material impact from CCAA, the credit bid would replicate the recap from July 13. In the Nov29 purchase, it goes to great detail to make sure that it states support agreement still in place, and no material impact. It then talks to transfer of shares to second lien holders and beneficial owners as

[Pancho2]

July 12, 2016 Terms of the Support Agreement "existing Shareholders will hold a total of 2.25% of the then-outstanding Common Shares and existing Shareholders will also receive Series 2 warrants equal to 7.75% of the total number of issued Common Shares (the Series 2 warrants will be exercisable for a period of five years following the effective date of the CBCA Plan Transaction and have a

[wizthewiz]

Thanks for the info. Now, what to do if you own 100K of these unsecured shares?"

[Oldfart74]

No problem with thanking Pablo who posts complete gibberish.  The Dec 8 press release is very clear. The assets are being sold to a company owned by the secured bond holders.  Nothing is available to the other creditors or shareholders.  

[Pancho2]

Hi Fart,  I am just copying and posting what the Company posted. If you look at the Q3 2016 Balance Sheet, it clearly stated that "Liability subject to  compomise was $1,337.05. ( UnsecuredBonds and Secured)  So if you are an unsecured Bondholders you were paid off by the Secured Bondholders (Ad Hoc Committee). If you are a Shareholder with 100,000 shares, you will get

[Oldfart74]

Why post old news which has subsequently been superseded?  The Dec 8 press release is the one that counts.  It was issued after the court approved the sale of the entire assets to the secured Bond holders.  Keep living in fantasyland but eventually you'll understand that your shares are worthless.

[Pancho2]

Fart,  the credit bid  by the Ad Hoc  (as per July 12) was successful. if not Shareholders would have gotten a guaranteed $20M Again In the event that the Secured Credit Bid is not the successful bid that is approved in the proceedings under the CCAA and the Secured Noteholders are repaid the full amount of their claims in respect of the Secured Notes, then upon receipt of