Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

Armoyan wants CCAA

[Northforce13]

I reread the letter, I guess mulling it over in the back of the mind then rereading it made it clearer.

I think the probability that GA wants SOT to go the CCAA route is much higher than I previously thought. 

Much of what GA says relates to the asset management agreement.  It is clear this is the major point for him. 

That combined with his lack of activity to help the REIT seems to be like a 2 + 2, plus the lenders installing a legal firm, is anoither 2 + 2.

It seems probable he has a plan which involves the REIT going into CCAA which would allow it to terminate the asset management agreement.

How unit holders and debenture holders will ultimately be affected is a good question. 

Taking a step back, I think I would also conclude that getting rid of that asset management agreement is vital to the REITs long term health and survival.  

With all that being said, GA doesn't sound like an easy person to get along with.  The Welch's do appear to have ceded ground regularly, but it is probable that they will do everything they can to keep their cash cow asset management agreement in place and keep their milk cow alive so they can keep milking it for all its worth.

Certainly interesting times.

[rad10]

  wouldn't be too surprised to see this route taken.

[TVR]

The CCAA process allows a company some time to restructure its finances and make a proposal to creditors which may or may not be accepted.  Pretty sure it does not give the company the right to void contracts such as management contracts and leases so CCAA would not impact the management contract with SLAM unless this was part of the creditor proposal and would almost certainly need SLAM to

[pennylane101]

I have to applaud Armoyan.  As someone who likes to brag about not having an MBA, CA or CFA, his skillful business acumen is becoming clearly evident.  Yes, how to drive a company into the ground in record time.  HIs name is Mud!  

[Tree2tree]

Are you forgetting that Armoyan is not the CEO?  If he were not there as a counterbalance to the management team, things could be worse.  Maybe the plane would have already crashed.  Or at least, sold in a way that would benefit only the management team.