I post the two links below for information. A similar situation developed last year in a UK company I had an investment in - lenders put forward proposals to convert all their debt to equity upon which event they'd own 98.5% of the company and would put up the funds needed to get through. Shareholders like SWC kicked up an unholy stink about the proposals, shouting loudly all over the place about voting "no - it's not fair". Some shareholders got together in groups, demanding talks with the lenders (hedge funds hiding their identities behind a Norwegian trustee). Everything SWC has been advocating and more was brought into play.
Result? See 2nd link below
https://www.investegate.co.uk/xcite...-re-proposed-restructure/201609271400019683K/
https://www.investegate.co.uk/xcite...nt-re-shareholder-update/201610251245024141N/
People might want to consider, before voting 'no', what they might get as an alternative - those who live in the real world that is.
This is XEL Energy Resources (XER) today - guess who owns the shares:
https://beta.companieshouse.gov.uk/company/04560068
The liquidator (whom the hedge funds appointed because they had all the votes) sold XER to the new owners (the ones who lent the money) for $1 in return for debt cancellation. A name change swiftly followed. Certain key former directors and senior management got to keep their jobs (continuity, you see - it was needed for the hedgies to win). Everyone's a winner.
Except the former shareholders of course. It would seem it wasn't their company after all.
I'm not saying that's what's going to happen here - just flagging up the possibility. If hedge funds don't get their terms they don't tend to play - there's probably plenty of security to return to them in full (plus more on top) what they paid for the debt and have since put in, given they paid a fraction of the face value of the debt they acquired. The word 'vultures' comes to mind................
More amateurism from me, SWC - off you go...........you're the only one who understands it all......
jmofwiw/dyor
