Action was occuring on a daily basis in August and then nothing happens. Guess what, YLO had massive credit lines open. If the bank, following downgrades and mess, called those credit lines back, then YLO is probably already in liquidity strap. Securities, not being bought back just cost more and add up to liabilities. These are expensive to service and the prefs, despite sinking, are not bought back either for cancellation and cost even more to service.
This company fails at multiple levels. They don't even reply to IR mails and give not much transparency on what exactly they perform.
This explains why it opens 1-2 cents up in the morning and systematically gets down at the end of day. One would be crazy to bid up for such impossible to value business with likely bad outcome.
They had 700 million from Trader deal to buyback plus cash on hand and Dividend savings. As stated above, they can still make private deals to buyback debt at a substantial discount. Don't worry about the debt, worry about execution of the business model.
And since they have stopped providing guidance, I doubt they will say anything positive to say unless they have to as positive news will cause the debt repurchases to become more costly.
That's a nice research article from BMO. I wonder why that article wasn't protected by security, but great for us it was not.
One mistake I found in the BMO article was page 3 first paragraph at top and last sentence where it says that the "...common share and preferred share repurchase program" are "now suspended". In fact the earnings press release from Yellow Media says that the common share repurchases are suspended but that "The Company will continue to be active in repurchasing its first preferred shares in order to manage the profile of its maturing obligations."
I read that to mean the company will continue to repurchase preferreds series 1 (aka A), series 2 (aka B), series 3 (aka C) and series 5 (aka D). Does anyone read this differently?