The two radically different views on the takeover of twin butte energy _ financial post

Today we present two additional views, one from a holder of convertible debentures (who at one stage also owned common shares) and the other from the company, which responded to an earlier request from the Financial Post for a comment.

MARTIN HASTINGS The holder of about $250,000 face value of convertible debentures, has written to the company, on two occasions, and its bankers. Ag gaston funeral home birmingham al This week he wrote to the analysts who cover the company.

Hastings didn’t like the proposed transaction from the outset. Gas stoichiometry practice Indeed on July 13 (the deal was announced June 24) he noted that because “it will become self-evident that this deal will not be approved by the debenture holders,” it was time to consider new options. 76 gas station locations One new option was for the company’s bankers to grant an extension to “run a new auction for its assets.” (The bankers have generally been compliant have extended so-called forbearance till late September.)

And given the way oil prices have moved over the past few months, Hastings was confident that a higher price would be obtained. Electricity load profile “Given the passage of time, the Reignwood offer is now stale-dated,” he said, noting that a trustee in bankruptcy “has a fiduciary duty to obtain the best price possible for the assets under its stewardship. Electricity off This price is normally discovered through an auction process.”

In his letter Hastings added his view that it was “beneficial to all parties to run an auction process outside of CCAA proceedings. Gas urban dictionary If a CCAA proceeding becomes necessary the results of a fresh auction could be used in a pre-packaged deal,” he added.

Hastings argued on grounds of “procedural reasons of fairness,” that debenture holders be given full access to the auction process. Power quiz questions (He nominated Bockhold Investment Management Group, the investor leading the charge against the deal, and its financial and legal advisors.)

But Hastings wasn’t confident, noting, “It appears that [management and the board] will attempt to structure a deal that furthers their own interests at the expense of the proper, prioritized interests of Twin Butte’s security holders.”

This week he penned a second letter where he reiterated his primary concern with the proposed Reignwood transaction: it will pay Twin Butte shareholders nearly twice as much, in absolute dollar terms, than the more senior debenture holders. Electricity and magnetism physics “This is not only in contradiction to well-established corporate precedent but more importantly violates the reasonable expectations of investors — namely that upon restructuring or dissolution the owners of the more senior securities will be compensated prior to the security holders with a more junior claims,” he wrote.

To see the deal get over the line, Hastings was prepared to take a haircut – but not too much. X men electricity mutant “While I could tolerate a token amount being paid to shareholders to facilitate the closing of the transaction, I find it unacceptable that shareholders are being paid twice as much money as the senior debenture holders.”

ROB WOLLMANN: This week the company’s chief executive emailed a response to a question from the Financial Post: why, in the face of such opposition from the debenture holders, hasn’t the company changed the terms of the deal?

He wrote, that “any amendments to the agreement require approval of multiple parties, including Reignwood and the lending syndicate, not only Twin Butte.” He added that the draft debenture to equity swap proposal [whereby debenture holders would convert to equity at $0.06 a share, the price that shareholders have been offered, a move that would boost the proceeds paid to the debenture holders and lower the proceeds received by the equity holders) that was received by Reignwood’s advisors “earlier this week and [was] rejected. Z gas el salvador precios Our lending syndicate, which has supported the Company to get to this point, has indicated no interest in supporting an amendment that would require a further significant delay to closing which the proposal would entail,” he added.

He said its “factually incorrect” to insinuate that the arrangement agreement was structured to protect insiders. Gas pains or contractions “With respect to management a condition precedent of the offer was management remaining in their positions as Reignwood does not currently have an oil and gas operating unit,” he noted.

As for why Reignwood’s offer was structured in the way it was, Wollmann said that “we can only presume that Reignwood made this offer with the advice of their financial advisors, Deloitte, as representing the best chance of satisfying each group who needed to approve the arrangement.”

He added there was no “structuring” of the transaction by Twin Butte as it was simply a “take it or leave it”, non-negotiable, proposal from Reignwood. B games basketball “In comparison to all other alternatives received through the extensive strategic review process which would have resulted in zero recovery to both shareholders and debenture holders, it was an easy decision on the part of Twin Butte’s board to proceed with Reignwood,” he said.

Accordingly he wrote: “The option for debenture holders is clear, and the risks of a no vote are substantial. Gas jet size chart It is unfortunate that if the dissident debenture holders are successful in defeating the proposed arrangement, the most likely outcome, based upon our knowledge of the facts today, will be complete losses for shareholders and debenture holders, and continued employment uncertainty and job losses for our employees.”

His final comment was that Twin Butte “remains of the view, based upon all the facts currently available to it, that the proposed arrangement is the best possible outcome for all stakeholders.”