Getting ready for court.
I know a few people, like myself, are keeping a folder, and adding files for submission to the court. I suggest anyone collecting email, files, rumors and tips, please keep fairly good records of the source and date received, build an index and summary page - if you can. If, and I mean IF this deal gets to court, Siskinds or whoever represents shareholders will need time to prepare their submission(s), it could be short - so be prepared.
Luxton hopes to compel a judge that it is in the best interest of the Government to allow this transaction to complete based on "expert" asset valuations. Our job as shareholders is to PROVE it is not in the best interest of the Government to accept these valuations. Luxton will be discounting shareholders as wanting to see an Allen-Vanguard "Scortched Earth" due to our losses, and discount our submissions. We must prove otherwise, by proposing new viable ideas and/or counter-offers to the "shareholder rout" planned by Luxton and the Board. We need to privately think of options, develop ideas, and when the court date is announced, pool our thoughts. Let's use the board for general updates - not "specifics".
This court discussion could all be moot, as I received information today from a very credible source that the "wobbly wheels" on this deal, just got a lot more "wobbly" today.
If this deal dies, CCAA is next, and shareholders should be a lot happier:
1. the books get opened
2. an administrator collects open bids on individual assets
3. assets sold to the highest bidder
4. Luxton, Allen and Board will have some explaining to do
5. shareholders get piece of anything left after debts (which is a hell of a lot more than what we have been promised - so far)
Shareholders are still waiting for a hearing to be booked...
cas-ncr-nter03.cas-satj.gc.ca
There are a lot of people watching what happens with this deal, reporters, producers, lawyers, bankers, politicians, business community, OSC, TSX, and courts. IF the court approves this deal as an alternative to CCAA - who will be next ? I guarantee there will be a flood of copy-cats, and a corresponding lack in market confidence.
Allen-Vanguard is holding their cards very close to their chest for good reason - as they KNOW this is not a sure thing, and very scared their deal will die, as it is. If ONLY they could find $50 million for shareholders - their deal will happen.
(Luxton, Allen, and Versa could profit from the upcoming multiple IPO's without having to worry about MORE shareholder lawsuits)
Do they want to risk it all for $50 million ? (that is only $47,488,028.81 USD) |
