Congratulations
to Lanny McDonald
on his induction into Canada's Sports Hall of Fame.
You can read more about it here: http://bit.ly/2pGs4KH
As our representative plaintiff, he presented the following evidence in court on June 15, 2016 to the Appeal Court. http://bit.ly/2oZkqgF
It is clear from this Computershare letter that the interest payment on the Unsecured Subordinate Debenture was paid.
"John Clarke sent this cheque to us before the interest payment date on the hope that Birch Mountain could reach an agreement with its Senior Creditor in the days following the cheque issuance. It has now been one month and, as the situation has not yet been resolved, we feel it is in our best interest that the cheque be returned"
How could there be a material default if the interest was paid? Brookfield prevented the interest from being paid causing a material default and the beginning of the end for Birch Mountain Resources.
And yet the Alberta Appeal Court, with the above piece of evidence in hand, stated:
"[42] Interest was payable by Birch Mountain on the Convertible Unsecured Subordinated Debentures. The failure to pay that interest would adversely affect Birch Mountain’s financial reputation in the public markets, and likely be deemed a further default under the Tricap financing as well. Birch Mountain did not have funds available to pay that interest, but Tricap consented to the interest being paid out of a new issue of equity. "
There is no Hall of Fame for Class Action Lawsuits or Egregious Injustices but if there were we might very well be it's first inductee - the Birch Mountain Shareholders.
