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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.

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