Why would prem care if the company gets a buyout offer?
What sort of board member gets a breakup fee if the company gets a buy out offer?
And what would the company be "breaking up" from?
You are watching the worst managers ever make an embarrassing string of , at best, foolish and at worst, fraudulent, decisions.
Read the article. It's a no lose situation for the bond holders. Company goes under and bondholders are first in line in the bankruptcy. Company catches lightening in a bottle and bondholders convert.
In the unlikely even a suitor comes along, again bond holders make 25% on the spot.
Company is doing it because it has no other choice. Without a billion infusion of cash, it will be bk within a year.
"We'll pay you 88 million if you pay us 250 million."
Corporate looting. The only thing the people in charge care about now is taking anything that isn't bolted down. All that cash the tards are singing about is having dibs called.
The purpose of the debenture is to put in place a long term strategy to re-establish BBRY as preeminent enterprise provider with or without devices. They don't want the company sold for the parts. This will take time but BBRY will be back and it will have a niche that will be impenetrable by others.
bunk,thats exactly what they want,remember this co as far as prem is concerned is worth more to prem in bk thasn as a going concern,reality there are no assets of big value.chenhas been brought in to broker deals for fairfax here.if you have stock get out,prem is coming for it this spring
That's all great but how do you see the shareholders riding along?
$1billion isn't going to save blackberry.. It is just going to give the debenture holders control during the BK...
Then after the common holders are wiped from the slate the company may become this, that or the other thing....
Why would every move seem designed to wipe out the common holders, to drive away other suitors?
At some point you have to wake up and see that this car is being driven, in a very purposeful manner, over a cliff and that there is one group, Prem and his partners, who are just fine with that.
They also happen to be driving
He's basically sticking it to the shareholders, with great impunity, and that's why the other big funds and major holders are or will be abandoning ship even if they thought there's value in this company. They will continue to sell for months and months...
Sentiment: Strong Sell