Lanesborough Real Estate Investment Trust V.LRT.UN

Deficit versus equity

[quicksilver545]

I had a look at the financial statements dating back to 2006. We currently have a deficit of 182M, which has steadily ballooned in the past 3 years. The main difference compared to past years seems to be the asset valuation declining rather than big increases in liabilities, related to fair value adjustments.

I wonder, given the improvements in occupancy in Fort Mac, and rising real estate prices, what the change in fair value adjustments we receive at next report. I can't see how we decline further.

What reasonable value would be placed on the asset portfolio, and are the secured lenders willing to take some reductions?

[BobTheKnob2]

The main reason why things asset valuation declined in the last while can be fully explained by a series of what some may call a "a series of unfortunate events". 1.) 2016 wildfire that caused over 88,000 people to leave their homes; 2.) 2020 flood causing $522 million in damage; 3.) price of oil turned negative in April 2020 (buyers were being paid to take oil off producer's/seller&

[quicksilver545]

So is there plan to just keep adjourning this meeting until the debentures go into default? I don't understand what management is hoping to gain here. They clearly do not have enough votes to achieve what they want.  If they do miss the payment, and default is triggered, are we really at the bottom of the secured lenders list? If so, that doesn't seem to be a good outcome for us