In CCAA, Creditors are Broken in Groups/Classes...
This is mentioned in the most recent CRYFQ motion, Fung's affidavit, and the Monitor report. The claims process. And, is yet another little thing indicating that the judge and CCAA procedure is trying to close this out. Get 'er Done!
Information on the CCAA Procedure is available all over the internet.
Anyways...
Once the Groupings or Classes are determined, which is really no big deal (can be by amount owed, or type of debt, etc.), the company's final Plan, previously negotiated, is disclosed to creditors for their approval. Since previously negotiated, just like a contract, everyone knows the outcome. Company needs 2/3 by number as well as creditor valuation to approve, in each Group/Class to stay alive. In CCAA, it is not really correct to say that the Noteholders, because they hold the uber-majority of debt, have final approval. Depending on how it is all Grouped/Classed, any majority in any class can pull the plug on the whole deal.
So, at that point (likely around the end of this current Stay, possibly another extension, or maybe I will be incorrect and it goes extension ad nauseum), it is either a YES or a NO. If YES, everyone lives by the Plan. If NO, there will not be any continuing negotiations, there will not be any renegotiation, there will not be any do-overs. That is it in CCAA. Final. Company gets scuttled.
This is why there is all the current drama and meeting in chambers calamity. Also, notice, the Monitor has yet to post the filings, regulatorily required within two days of receipt. Since they are there in the courtroom on the day, they basically are in receipt on the day. Yet, no disclosure as of the time of this post. Maybe at COB, but who knows.
Sincerely, hope it works out well for commons.
GLTA
This is mentioned in the most recent CRYFQ motion, Fung's affidavit, and the Monitor report. The claims process. And, is yet another little thing indicating that the judge and CCAA procedure is trying to close this out. Get 'er Done!
Information on the CCAA Procedure is available all over the internet.
Anyways...
Once the Groupings or Classes are determined, which is really no big deal (can be by amount owed, or type of debt, etc.), the company's final Plan, previously negotiated, is disclosed to creditors for their approval. Since previously negotiated, just like a contract, everyone knows the outcome. Company needs 2/3 by number as well as creditor valuation to approve, in each Group/Class to stay alive. In CCAA, it is not really correct to say that the Noteholders, because they hold the uber-majority of debt, have final approval. Depending on how it is all Grouped/Classed, any majority in any class can pull the plug on the whole deal.
So, at that point (likely around the end of this current Stay, possibly another extension, or maybe I will be incorrect and it goes extension ad nauseum), it is either a YES or a NO. If YES, everyone lives by the Plan. If NO, there will not be any continuing negotiations, there will not be any renegotiation, there will not be any do-overs. That is it in CCAA. Final. Company gets scuttled.
This is why there is all the current drama and meeting in chambers calamity. Also, notice, the Monitor has yet to post the filings, regulatorily required within two days of receipt. Since they are there in the courtroom on the day, they basically are in receipt on the day. Yet, no disclosure as of the time of this post. Maybe at COB, but who knows.
Sincerely, hope it works out well for commons.
GLTA
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
