"Once the vote is passed, MMC essentially becomes a private company. And my shareholding will likely be diluted out of existence."
While not privy to any inside information FatMan,I dont share your view.
Debenture - What is a debenture?
Debentures are the most common form of long-term loans that can be taken by a company.
Debentures are usually loans that are repayable on a fixed date, but some debentures are irredeemable securities (these are sometimes called perpetual debentures).
Most debentures pay a fixed rate of interest. It is required that this interest is paid prior to dividends being paid to shareholders. Furthermore, most debentures are secured on the borrower’s assets, although some are not (these can be known as naked or unsecured debentures – most debentures in the USA are unsecured).
Debenture holders Debenture holders (investors) do not have any rights to vote in the company's general meetings of shareholders, but they may have separate meetings or votes e.g. on changes to the rights attached to the debentures.
The interest paid to debenture holders is calculated as a charge against profit in the company's financial statements. Advantages The main advantage of debentures to companies is the fact that they have a lower interest rate than e.g. overdrafts. Also, they are usually repayable at a date far off in the future.
For an investor, their main advantages are that they are often easy to sell in stock exchanges and they contain less risk than e.g. equities. Convertible vs. non-convertible There are two types of debentures:
Convertible debentures: Convertible bonds or bonds that can be converted into equity shares of the issuing company after a predetermined period of time. Convertible bonds are more attractive to investors since the bonds have the ability to convert and also attractive to companies since they typically have lower interest rates than non-convertible corporate bonds.
Non-convertible debentures: regular debentures which cannot be converted into equity shares of the liable company. Since they are not able to convert, they usually carry higher interest rates than convertible debentures.
Besides MMC,there are three on their list which look extremely attractive in terms of hedging my investment in MMC.
Don't get me wrong FatMan, to say I'm pissed as to what has transpired in a very short space of time at Marengo would be an understatement of monumental proportions.
I do believe with our potential thirty percent shareholder in Petromin (PNG government)soon to be in the money due to their PNG-LNG investment,there is light at the end of the tunnel. They need to provide Marengo with circa $45 Million in backwardation costs .
In any event part of investing is to limit/minimise/reduce potential losses,to that end,I'm going to invest in one of Sentients other options.
White knight holds candle for Magellan
The Canadian-registered private company Enirgi Group used three capital raising ventures last year to bolster its holdings in Magellan's Canadian parent Ivernia and form a majority stake of 60 per cent.
Enirgi Group, which already had a substantial interest in Ivernia, was called Green Sea Resources up until last week and is owned by Sydney-based private equity firm Sentient Group. Both the Enirgi Group and Sentient Group are headed up by Australians teams.
(20min delay)