Thinking The Negotiations Are Less About Bucks...
...and more about control of how repayment happens. Notice Tenor. For the DIP, they negotiated slots on the Board so that they have control and intimate knowledge of how their stake will be paid back. Although, am a bit surprised Tenor allows the cash burn rate, it just may be all a part of some insidious plan by Management/Tenor.
If I did not think these guys were all in cahoots, I'd think there is now a sticky situation about opening up some more Board slots so that noteholders can have some say over how their repayment is controlled. Typically and historically in CCAA, Plans have the larger creditor(s) obtain some control of the company, usually in the form of Board seats, so that they have some control and assurance of being paid whatever the Plan outlines.
If these guys are not in cahoots, would think Tenor wants no part of giving any little bit of control to noteholders, despite it being a somewhat normal occurrence in CCAA Plans. Had the noteholders won their appeal, but had been told by the court too-bad and that is the way it is, then there would be no sticky situation. Interesting.
Timeframe is unknown, but appears to show signs of being more on the fast track than previously. Burn rate has always been in afterburner mode. Thinking commons will be fortunate if they retain one-third of overall equity if a Plan happens. Tenor is probably salivating at the opportunity to get another chunk of common's equity with a "DIP2" down the road.
Any way it is sliced, commons appear to be the losers in all of this. After all, management is negotiating with the only thing they have to negotiate with - common's equity.
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