Re: Affidavit of Robert Fung sworn December 22, 2011
posted on
Dec 23, 2011 10:57PM
After reading the document except for the appendix, I am loving it. To me that the CCAA filing is under the request of the potential lead investor so it looks like that the DIP financing should be moving quickly, and we should be move out of the Canadian version of chapter 11.
If Robert Fung is truthful 100% to this document, he had earned all of my respects because he is fully diligent to his work duties and is trying to maximize and protect our shareholder values. From the document, it implies to me that he was given many options to avoid CCAA filing, but come with the expense of our shareholders value. And he made it clear to the court that how silly it is if we liquidate the company just to payoff the 100M. Of the whole document, maybe I was very sensitive, the word "shareholder" are all over the place which gave me an impression that this chosen strategy is the best strategy for our shareholders. I love it.
At 49% cvr and 20% pik "simple" interest. And the 2004 note holder had indicated that they are more than willing to beat the potential lead investor by offering an even more favorable term if management is willing to keep them in the game. We are well protected in my opinion.
So to me, the key now is how fast we can get the DIP financing. Once we get it, VEN government will realize that the management will be their only contact to negotiate a settlement. My gut is telling me that is the reason the cvr is set at 49%, not above 50% because the management wants to keep shareholders as the decision maker if any settlement comes and bob can represent us to maximize all stakeholders value, including the time and cash value. If bob is attempting to give up more than 50% in cvr, then VEN government might consider the potential dip loan investors as the sole contact for negotiation not bob Fung. So I saw how Bob is trying to protect shareholders in this my regard and he has earned all of my respects.