Previous month:
September 2014
Next month:
April 2015

January 2015

History Repeating Itself

The Brookfield Class Action lawsuit is still in progress but it would seem "The Street" recognizes the pattern and counts Birch Mountain as another casualty of Brookfield's "help" adding to the many casualties including Stelco and Atlantis.

From an article on The Motley Fool, here.

"Birch Mountain

Back in 2007, Birch Mountain Resources was sitting on a limestone deposit valued at $1.6 billion. Unfortunately, the company was running into financial trouble, and did not have enough capital to develop the deposit. Brookfield stepped in with $50 million in financing, but Birch Hill eventually defaulted on this debt. As a result, Brookfield gained control of Birch Mountain, along with that $1.6 billion deposit.

Birch Mountain’s former shareholders have sued Brookfield in response, led by former hockey star Lanny McDonald. The outcome of the case is uncertain. But here’s what we know already: Birch Mountain’s former shareholders suffered big losses, and Brookfield made a big gain."

Brookfield would like you to believe that Birch Mountain was bankrupt and insolvent and therefore worthless. As the above article points out - cash strapped does not make one worthless.

Birch Mountain is worth $1.67 BILLION!