Brookfield Office Properties Inc T.BPO.PR.G

I wonder if BPO does not declare a dividend, shareholders

[CrazyTrader]

will need to go to litigation to enforce guarantee on BPY or will BPY automatically step in and pay?

[SONOFFERGUS]

Crazy, I'm glad you're on the sidelines because you are missing some fundamentals on what the hell you used to own (despite the efforts of a lot of posters here). You must understand that companies don't have any obligation to pay dividends so there is nothing to litigate. These prefs are cumulative ofc, so the guarantee is in respect of BPO's obligation to pay accrued and

[pierrelebel]

"  It is very much not a guarantee that BPO will declare and pay dividends every quarter." Quite correct. Anyone with half a brain reading the guarantee statement at time of BPY buying BPO would understand that.

[CrazyTrader]

Yep, as I supected.... guarantee probably not worth the paper it's written on.     Glad you guys agree.

[SONOFFERGUS]

I supect you have always struggled with comprehension. The guarantee does what it is supposed to do -- make BPY liable for BPO's obligations to BPO pref holders. If BPO BK'd, BPY would have to pay.  If BPY could not pay, pref holders would lose out because BN is not legally responsible.  This is how holdcos work.  However, and this is what you (inexplicably) can't

[CrazyTrader]

hmmmmm..... tell that to Brookfield's DTLA Prefers.

[CrazyTrader]

"What we (well, not you) are relying on is that BN is ready, willing and able to continue paying the BPO divs" LOL !!!!!!!!!!!!! 

[CrazyTrader]

If these guys can not READ and Understand a one liner sentence post correctly, LOL, you think they can interpret and understand all the "data/research" they do?!!!!!! My post clearly states "if BPO does not declare a dividend".... These guys turn around and think I think the Guarantee is a guarantee that BPO will declare a dividend.... LOL

[SONOFFERGUS]

I wonder if BPO does not declare a dividend, shareholders will need to go to litigation to enforce guarantee on BPY or will BPY automatically step in and pay?   You dropped this Einstein.

[CrazyTrader]

You basically answer this....... You basically said BPY will probably never have to pay because BPO needs not declare a dividend and BN will probably never let BPO go bankrupt (go out of existance, at least on paper) and so a dividend could never be paid, just "accumulate". This is what you basically said.   And I agree with you. Again, what's happening to DTLA Prefers?

[SONOFFERGUS]

Basically a company never has to pay dividends.  Basically a company that doesn't pay dividends as expected will have zero access to capital markets.  Basically.  This would not be a decision taken lightly.  Perhaps that would not extend to BN but if I were Bruce I would not be making that bet for a measly $50ish mm per quarter.  No chance.  Imagine the billions

[SONOFFERGUS]

oops straits, for your edification