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Calfrac Cannot Run From its Independent Shareholders who Deserve a Premium Recovery. Delaying Their Meeting Only Delays the Inevitable
Calfrac Cannot Run From its Independent Shareholders who Deserve a Premium Recovery. Delay...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac Cannot Run From its Independent Shareholders who Deserve a Premium Recovery. Delaying Their Meeting Only Delays the Inevitable\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCISCO, Texas, Sept. 15, 2020\n\n\n\nCISCO, Texas, Sept. 15, 2020 /CNW/ - Something has changed. \n\n \n \n \n \n \n \n\n \nCalfrac Well Services Ltd.'s (\"Calfrac\") (TSX: CFW) announcement yesterday that they are postponing the Shareholders meeting that was to take place this Thursday, September 17, is confirmation that Shareholders do not support the coercive Management Transaction.  Calfrac's Board and management are now playing for time in the face of mounting opposition and broad recognition in the market and by leading analysts and advisory firms that the Management Transaction is not good for Calfrac or for its Shareholders. \nWhile Calfrac can delay the inevitable, it is clear that Shareholders have recognised that the Management Transaction is the Worst of the three possible outcomes presented to them and they will vote accordingly. \nUnder the Management Transaction, Shareholders suffer immediate, massive and continuing dilution, and will retain only a small stake in an over-levered and cash-starved company which has no clear path to success and is likely headed towards a further restructuring that will completely eliminate shareholder value. This is true for all Shareholders except the Company's Chairman, Mr. Ron Mathison, who will retain his value as the only shareholder allowed to participate in the offering for the 1.5 Lien Notes.\nIn contrast to the Shareholders' fate, if the Management Transaction proceeds a self-selected group of unsecured creditors will reap the benefits of the \"payment in kind\" financing that is part of the Management Transaction. That self-selected group will also benefit from the payment of a $1.5 million \"Commitment Fee\"; part of an estimated $19 million in expenses that Calfrac will incur in implementing the Management Transaction. \nA Better outcome for Shareholders is the Premi...