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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: ralfph who wrote (234814)	5/2/2014 11:22:08 AM
From: Veteran98	Respond to of 312759

JAG ... looks like debtors own pretty well all the shares and and Outrider owns about 32 % of the shares .... so not much debt and 36 million in cash .... might be worth a punt ...... Following the Restructuring, a fund managed by Outrider owns an aggregate of 36,044,388 Common Shares, which constitutes approximately 32.4% of the total number of Common Shares outstanding following the completion of the Restructuring. The Common Shares acquired by a fund managed by Outrider in the Share Offering were acquired at a price of US$0.7047 per Common Share (approximately Cdn$0.7751 per Common Share). *Plan of Arrangement* The Plan of Arrangement has the following key elements: • Exchange of approximately $268.5 million of Notes for New Common Shares; • Reduction of total pro forma debt from approximately $323 million as at December 31, 2013 to approximately $43.9 million upon completion of the Plan of Arrangement; • Reduction of projected annual cash interest payments by approximately $13.1 million; • Investment of approximately $50 million of new equity raised by way of a backstopped share offering (the “Share Offering”) by current holders of Notes (the “Noteholders”) and possibly other affected unsecured creditors of the Company (the “General Unsecured Creditors”), the net proceeds of which will be available for use in the Company’s operations; • In full settlement of the Notes, the issuance to Noteholders of their pro rata share of: o New Common Shares representing approximately 12.6% of the equity of the Company outstanding following implementation of the Plan of Arrangement (the “Unsecured Creditor Common Shares”), in exchange for all outstanding obligations owed to Noteholders under the Notes (including, without limitation, outstanding principal and all accrued and unpaid interested thereon); o New Common Shares representing approximately 4.5% of the equity of the Company outstanding following implementation of the Plan of Arrangement, if such Noteholder signed the Support Agreement on or prior to November 26, 2013; o New Common Shares representing approximately 8.0% of the equity of the Company outstanding following implementation of the Plan of Arrangement, if such Noteholder participates in the Share Offering or is a funding backstop Noteholder to the Share Offering (the “Accrued Interest Offering Shares”); and o New Common Shares representing approximately 10.0% of the equity of the Company outstanding following implementation of the Plan of Arrangement, if such Noteholder is a funding backstop Noteholder to the Share Offering (the “Backstop Consideration Shares”); • The issuance to General Unsecured Creditors of their pro rata share of the Unsecured Creditor Common Shares; • The issuance of New Common Shares representing approximately 63.9% of the equity of the Company outstanding following implementation of the Plan of Arrangement pursuant to the Share Offering; and • Existing shareholders of the Company will hold approximately 0.9% of the equity of the Company outstanding following implementation of the Plan of Arrangement