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June 2016

Now we wait

We were in court from approximately 10 am until 3 pm. It was enough time to address many of the finer particulars of the case.

We cannot speculate on the outcome and must now wait for a decision. It could be several months. 

However, check back with us here on the blog and we will have the transcripts for you to read and judge for yourself. 


"Lanny McDonald was facing off" today with Brookfield

Lanny McDonald, Brookfield going another round in Alberta quarry case

http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/lanny-mcdonald-brookfield-going-another-round-in-alberta-quarry-case/article30462940/

 


If Brookfield Asset Management has so much money, why don't they buy out shareholders at a fair price?

In a Bloomberg interview with Bruce Flatt, he says,

"For example, we took Canary Wharf private. It was $8 Billion dollars to take it private. . . . Not many people have that amount of money to take it private." (timestamp 1:29 http://www.bloomberg.com/news/articles/2016-01-13/brookfield-eyes-blackstone-status-with-private-equity-push?cmpid=yhoo.headline&ref=yfp)

An article in the

Wall Street Journal

called it a

"hostile takeover."

"The Brookfield-Qatar venture launched its hostile takeover in November."  (http://www.wsj.com/articles/brookfield-qatar-fund-take-control-of-londons-canary-wharf-1425407733)

Why do they have to keep changing the name of their distressed equity fund?

Is it to make it difficult to follow the paperwork?

When Brookfield's subsidiary went by the name of Tricap they represented on their web site and in SEC filings: (https://www.sec.gov/Archives/edgar/data/1001085/000119907305000640/ex99_1.htm)

"Tricap Restructuring Fund is a

US$350 million specialty fund

established by Brookfield Asset Management

and four institutional investors to

provide a source of patient,

long-term capital

and strategic assistance to companies

with attractive tangible assets and

proven operating history

but experiencing financial or operational difficulty."

 

But in the Bloomberg article accompanying the video, Bruce Flatt clearly contradicts that. 

"We’re owner-operators. We buy businesses we hold for long periods of time. We earn greater multiples of capital. We’re just a little different."

 

Is 10 months, 10 days supposed to be "long term patient capital?"

Or is that how long it takes to "take a company private" and become the "owner-operator?"

Because that's how long Tricap was with Birch before becoming owner-operator of the $1.6 Billion dollar asset Birch shareholders owned.


Lanny McDonald - Lead us to victory!! June 15th

A shareholder on Facebook reminds us that the journey of the last 8 years has been possible through a team effort with many people to thank for their contributions and support. So, thank you all. 

Here is the FB post:

"Thanks to all the people who who have made contributions to this case with their Money,Time and especially their Effort, know that you have given HOPE to all Shareholders that have endured this tragedy and let's remember those that have perished because of it.

As we honor and eulogize those that are pictured below, their quotes epitomize the Team that has led this effort."

Ali_Howe

Lanny McDonald is also one of those great sports figures who exemplifies a courageous team spirit. Perhaps that is why he is Chairman of the Board of the Hockey Hall of Fame. He will be in court on June 15th representing us, the shareholders against Brookfield Asset Management. 


Is this a Brookfield admission of real intent behind their "distressed financing?"

"We can own great businesses forever, and that’s really what our goal is," Madon said.

source: http://www.bloomberg.com/news/articles/2016-06-01/brookfield-raises-4-billion-for-latest-private-equity-fund?cmpid=yhoo.headline&yptr=yahoo

What they used to say:

" Tricap Partners Ltd. was established by Brookfield Asset Management to provide long term patient capital to companies with potential for value creation and need to recapitalize. With strong industry and financial management expertise, Tricap is well positioned to assist these companies in reaching their full potential."

source: http://www.prnewswire.com/news-releases/birch-mountain-closes-315-million-financing-59607467.html

Tricap was the old name for Cyrus Madon's team at Brookfield. One has to wonder why they keep changing the name. Is it to obfuscate their trail of bad deeds?

Was Brookfield financing ever meant to "assist these companies in reaching their full potential" or as Madon states was the goal to own those valuable assets?

Perhaps, Bruce Livesey is on to something:

Thieves of Bay Street