Perpetual Energy Decision May Deter Issuers from Pursuing Dilutive Rights Offerings in Tandem with Convertible Debenture Share Repayments
|Lawyer||David Conklin, Tim Heeney|
|Area||Corporate Finance and Securities|
The Alberta Securities Commission (ASC) recently released its reasons in an application between Perpetual Energy Inc. (“Perpetual”) and a group of Perpetual’s convertible debentureholders (the “Applicants”). The decision highlights the challenges presented by convertible debentures as they approach maturity for issuers experiencing a declining share price.