CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

legal battle

[leo101]

If I read the release correctly, the gang that couldn't shoot straight, Canexus, is getting into a legal battle with a sucessful $8.7 billion market cap energy company.  It's pretty easy to pick a winner in this one.

[ocean112]

again - I beg to differ (a company's market cap has nothing to do with litigation)....here is the excerpt from CIBC....which is VERY revealing..... ____________ Canexus believes MEG has no right to refuse the tie-in works as under the agreement it was specified that CLB will be delivered “from the Lamont Station,  then through the new Canexus pipeline to the MEG Lateral Line

[leo101]

market cap would be a good indication of how deep a company's pockets are and how strong their legal team is.  from the calgary herald today: "In a note titled “Nightmare at NATO,” analyst Jacob Bout of CIBC World Markets said the impasse has several negative implications. He said Canexus may be in breach of contract with its other NATO customers, including oilsands giant Cenovus

[ocean112]

ok....(I guess?)...by that logic - they will use their deep pockets to screw over Canexus - and screw themselves in the process (both by increasing risk of an adverse legal outcome and reduced Q3)...I know MEG has "alternative" options for rail - but they would be taking some hit as well with a drawn out court battle.... ....this is a zero sum game for both parties - and quick

[roscoe74]

It appears to be a spat regarding access to capacity. Perhaps Cenovus has elbowed MEG aside and MEG is not pleased with the outcome. This shakeout likely means something going on.

[jd43xl]

Baseless speculation from one who does nothing else. Go bother someone else, as you obviously are not a CUS shareholder.