Post by
RagingBull3 on Nov 28, 2020 10:09am
Contractual Term of the Preferred
"In the event of the liquidation, dissolution or winding-up of Husky or any other distribution of assets of Husky among its shareholders for the purpose of winding up its affairs, the holders of the Series 4 Preferred Shares shall be entitled to receive $25.00 per Series 4 Preferred Share plus all accrued and unpaid dividends thereon (less any tax required to be deducted and withheld by Husky) before any amount shall be paid or any property or assets of Husky shall be distributed to the holders of the Common Shares or to the holders of any other shares ranking junior to the Series 4 Preferred Shares in any respect. After payment to the holders of the Series 4 Preferred Shares of the amount so payable to them, they shall not, as such, be entitled to share in any further distribution of the property, or assets of Husky."
As I understand......
Cenovus is Buying Husky. Cenovus will pay Cenovus shares to Husky Commons and Husky commons will be cancelled. Effectively Husky will wind-up its affairs AS HUSKY and be effectively no more. Cenovus will be in the driver seat........As per terms, Preferreds entitled to $25/share before commons are paid their Cenovus shares.
To me it's very clear.... but it seems I'm virtually alone in my thinking.
There is the Law of Contracts, and there's the section 193 of the ABCA at play here. IMHO, Section 193 does not allow it to void Contract Laws.
All just my opinion.