jxpz, At the risk of being a pessimistic devil's advocate:- Your good wishes that they are able to "Get themselves out of this mess for the sake of the shareholders" could represent mutually exclusive outcomes. I can't help thinking that the shareholders might at least get something back in the near future if a receiver was to take over, sell the assets, pay the debts and distribute what little is left. If the company just manages to clear most debts itself and attempts to struggle on, perhaps with more debt or capital raising, the shareholders are hardly likely to see any dividends for a long time, and may face similar circumstances in 12-24 months. The climate is such that developments at Point Grey, Oceanique or Esperence are unlikely to be beating off perspective buyers in the immediate future.
Even if an institutional buyer did purchase Point Grey and/or other assets, for an amount that leaves PBD with some cash,(and Oceanique), any plans that PBD may have,eg.,Esperence, Peel Water etc., I believe would take a number of years before they showed profit. For example, PBD may have some trouble implementing their plan to extend the Peel Water model to other communities until it is able to demonstrate financial stability. Financial stability is one of the criteria that has to be met when the Water Authority issues a Water License.
So I am not sure what outcome would be in the best interest of shareholders. It may not be the same as an outcome that is in the best interest of Directors and management. (Being declared bankrupt can inhibit other future plans!) God only knows what the outcome will be, but I suspect we are in for a surprise.
PBD Price at posting:
1.2¢ Sentiment: None Disclosure: Not Held
