Quote:
Originally Posted by Lubicon
Buying debt (or backstopping debt) could be an effective solution. One issue I do see with debt in direct exchange for shares (if it's 1 for 1) is that shares for many service companies have fallen so low that the amount of cash injected would be so low that it would be almost meaningless unless the government purchased a large portion of the shares. Which is not idea. For example if the government ended up with 10% of my employers shares in exchange for debt it would mean about $300k to us which would barely keep us going another quarter, maybe less.
Second issue with this is that non public companies would not be able to participate in this either and they make up a large portion of the service industry too.
I don't know what the answer is. Debt purchase or backstopping would help but more is needed.
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I think you are at a service company (as am I) but if you expect any money to come to service companies you will have a long wait. If money comes directly to the industry (it won’t) it will only be producers.
The site rehabilitation program is the result of heavy lobbying from CAODC and PSAC.