Stadacona: no longer speak to trade unionists, but capitalists

Talks resume between White Birch and the unionized plant Stadacona in the hopes of coming to an agreement that would keep the unity of Quebec skinning less employees and retirees. Difficulty: the solution does not seem able to pass by an additional reinvestment.

This story is not without flinching. Workers who have accumulated a lifelong pension and who is asking for concessions ranging from 40% to 60%.

The difficulty in this case is mainly due to the fact that the guarantees had the senior creditors, or the factories of the company (Quebec, Masson and Rivière-du-Loup), are worth much less than the market value of loans.

Thus, the senior creditors had advanced to 438 million USD in the adventure. The combined value of plants is now estimated at 200-250 million USD. This means that secured creditors, who are rarely at a loss (and have not been in the record of AbitibiBowater) are obliged to take this time a considerable loss.

We will not enter the financial details of the case, which are very complex, but it is easy to see with his attempt to buy the three plants, Black Diamond White Birch – a consortium made up of just senior creditors Black Diamond Capital Management, Credit Suisse Loan Funding and Caspian Capital Advisors – Black Diamond White Birch therefore attempts not only to obtain the return on new money that is disbursed to acquire the company, but also adds to its loss capital. On this amount, initial loss + new money, it calculates the performance to be achieved.

Where a particular effort applied to employees.

Capitalism outrageous than that?

Maybe. In defense of Black Diamond will be noted however that there was an auction process several months ago and everyone was invited to make an offer. Even those who did not incur initial loss and consequently had to seek performance on a set much lower. No one has really shown (also Sixth Avenue, but it was other creditors seeking the same goal of recovery of loans).

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