Guest max340 Posted April 27, 2003 Share Posted April 27, 2003 hi is dagger there??????....would appreciate your thoughts on the value of the air canada shares......what are your thoughts regarding whether the company will cancel the old shares and issue new ones..it would seem to me that keeping the old shares active would be a disinsentive to new investors.....historically what normally happens in this type of CCAA...would appreciate your thoughts on this....cheers max340 Link to comment Share on other sites More sharing options...
Guest chiselcharter Posted April 27, 2003 Share Posted April 27, 2003 Please check your number and try your call again...If you need assistance dial 'zero' Link to comment Share on other sites More sharing options...
Guest ex-SkyGeek Posted April 28, 2003 Share Posted April 28, 2003 I believe Dagger mentioned in a recent thread to hold off as the current shares (historically) become worthless in bankruptcy situations like these. If Canada 3000 hadn't ceased operatioins so quickly I might have been able to give you first hand advice. Jason Link to comment Share on other sites More sharing options...
Guest ex-SkyGeek Posted April 28, 2003 Share Posted April 28, 2003 Had a chance to look for you. In a thread below called "Question for Dagger re: Air Canada shares" he said this: "Simple answer: Usually in CCAA, the shareholders get wiped. Often, the creditors are given shares in a "Newco" structure in exchange for converting debt. Sometimes, new equity is raised that floods the market with stock so that the existing shares are reduced to penny status. That should be familiar to CAI employees. You will see speculators play the stock, but they are going in and out on day-trading basis." fyi, Jason Link to comment Share on other sites More sharing options...
Guest flyersclub Posted April 28, 2003 Share Posted April 28, 2003 cdn shares went for $2/share in ac purchase. they had been almost penny stock before that though so at least we got something. strangely many many employee stock options were never exercised ... isn't $2 better than zero? Link to comment Share on other sites More sharing options...
Pierre Garneau Posted April 28, 2003 Share Posted April 28, 2003 I think with Canadi>n shares through the employee purchase program, there was serious tax implications, and it was better at the low price just to walk away and not exercise the option. Anyone remember? PG Link to comment Share on other sites More sharing options...
Guest Retyred Posted April 28, 2003 Share Posted April 28, 2003 I think you may be making a flawed comparison here. In the struggle with Onex, Air canada ended up making a formal take over offer for Canadian @ $2.00 per share! Canadian was not in CCAA at the time and the $2.00 represented a takeover offer. Air Canada is in CCAA..most improbable that anyone would step forward to purchase their shares under the circumstances. Dagger's advice is spot on! Anyone who chooses to hold the shares from this point on should be aware that they risk seeing the price progressively erode as they work their way towards the Plan of Arrangement. Review any historical precedent re: CCAA and see what generally happens to the common shares...usually 'cancelled without compensation'. Link to comment Share on other sites More sharing options...
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