A takeover proposal to rescue debt-hobbled Twin Butte Energy Ltd. is in jeopardy as debt holders angry over the prospect of a major markdown in the value of their securities vow to reject the deal.
Holders of Twin Butte's convertible debentures have appealed to other investors, arguing that the proposed buyout by Hong Kong-based Reignwood Resources Pte. Ltd. will result in them getting shortchanged. The debt holders, led by Bockhold Investment Management Group, say they should be afforded more money as a senior security class and that shareholders should get nothing.
Twin Butte says the arrangement is fair to all stakeholders, and that rejection stands to push the struggling company into receivership, as it has no other deals waiting in the wings following an extensive search for buyers during the worst of the industry downturn. Story
Bank-owned dealers gain from 'Goldilocks' volatility
It's been a robust earnings season so far for Canada's bank-owned dealers.
"All the banks have been beating our expectations on capital markets," Peter Routledge, an analyst with National Bank Financial, said in an interview.
The trading arms of all of the bank-owned dealers have been benefiting from what he terms as "Goldilocks" volatility: an environment of heightened volatility that's hot enough to prompt people to trade, but not so cold as to scare them off entirely.
"There's been a healthy amount of fear and greed," Mr. Routledge said. Story
Struggling CHC Student Housing Corp. found a lifeline by agreeing to a merger with Dundee Acquisition Ltd. that brings in $113-million, cash earmarked for the purchase of 12 off-campus university residences and the launch of a national niche real estate company. Story
LyondellBasell Industries NV has retained Bank of America Merrill Lynch to help with the potential sale of its 263,776 barrel-per-day refinery in Houston, according to two people familiar with the talks. Story
Tesla Motors Inc. has won U.S. antitrust approval to buy solar panel installer SolarCity Corp, the Federal Trade Commission said. Story
IN CASE YOU MISSED IT
Jeff Lewis on private equity holders seeking exits for energy investments. Story
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