Guestlogix Inc T.GXI.R

best scenario

[mingzhu]

only unsecured loan is 20 m debenture. GXI issuresd he debenture to buy OJ. After sale of OJ, gxi has 15 m cash left. It is quite possible  and fair debenture holders get this 15 m (75% 0f original )cash back. Just as i doubted they can get their money back 100 %.

CCAA is not proceedings of bankrupcy, debtor holders having  priotity over shareholders  in the distributionof the money as some people mistakenly believed. GXI is taken over by private companies.

if my assumption of 40 m takeover price is correct  then 40 m / 134 m shares * 1.3 currecy exchange =0.39 MINUS SOME cost of sale. My prediction of 20 to 40 cents a a few months ago 
are stilll holding. tomorrow  we may see the result.

[displayname1]

If the company has value, the shares have value even if they can't be traded. You reckon the net value of the company is that 15m - don't they have debts too, those need to be taken into account if they still exist.  The bankruptcy protection was to protect from those people, not shareholders.  I reckon there is more to this still before the real stock value outs and these can be

[joesterth]

"CCAA is not proceedings of bankrupcy, debtor holders having  priotity over shareholders  in the distributionof the money as some people mistakenly believed." Can you please elaborate on this? Why would creditors not have priority over equity holders in a cash distribution? Could you also please explain how you arrived at the conclusion that GXI debentures would not have to be

[joesterth]

"CCAA is not proceedings of bankrupcy, debtor holders having  priotity over shareholders  in the distributionof the money as some people mistakenly believed." Can you please elaborate on this? Why would creditors not have priority over equity holders in a cash distribution? Could you also please explain how you arrived at the conclusion that GXI debentures would not have to be

[mingzhu]

i am not a legal expert. i am just looking at something with common sense. GXI is not bankrupt, rahter taken orver by three investment cos. Debenture holders have 2 options:1 continue to hold the debenture and stick to the new enttity; 2, get some cash back. Gxi has 15 m cash 75 % of their investment. According to legal documents, 3 private cos acquire all shares of GXI. GXI must have some value

[displayname1]

Would you care to try and quantify where this value is ?

[Growthandprospe]

I am told by GXT that there will be an update later today on the PWC Monitor's report about equity holders and what they can expect.