I wouldn't sell my shares just yet

[LongTimer V]

Maybe i'm wrong,or wishfull thinking.But with the CIBC deal,the 3 German companies who have said they won't write off Air Canada and are ready to take over or out bid G.E.This tells me that a liquidation sale is not in the cards at this moment.I've seen press and opinions about what usually happens,but as the papers say this is a unusual circimstance playing out here.I'm still holding on to my stock,in case your woundering.Will use it against capital gains in the future,if needed.

[Guest WA777]

You might want to reconsider that....when a company restructures it usually means the issuance of new shares and the cancellation of all the old shares....regardless of whether it ever gets to liquidation....Watch Out!

[LongTimer V]

Ah you said the key word yourself USUALLY .
Right now it seems to be a crap shoot.Oh i stopped holding my breath on this one long time ago.

[Guest WA777]

The odds would be about 99 to 1 against keeping the old shares....too high for me...!

[inchman]

You may want to pay some attention to WA777, LTV.

For there to be any value in the old shares, holders of those shares need to prove that there is equity value to the judge. Since Air Canada was negative equity at the time of CCAA and is still burning money, I would suggest that that would be a difficult thing to prove.

Notwithstanding the negative equity position, even with the CCAA filing there are a lot of old bills that would need to be paid before the shareholders get any value for their investment. Shareholders are the very last people to be paid in these circumstances.

The reason why financers want a piece of the action is that there is a good chance we will survive this and there are some big fees and high interest rates to be earned for the DIP financers. On top of that, their investment is fully secured against current assets that used to be owned by the shareholders.