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Post by elizabeth on Mar 29, 2020 13:34:23 GMT
1. Kick Larry Dunn et all and Robert Mitchell et all to the curb. Eliminate the players to create a workable environment
2. Create a board of current investors with mortgage and real-estate experience
3. Run HE as a closed private company, no redemptions for two (arbitrary) years, continued monthly distributions as long as performing assets available.
4. No mortgage renewals or NEW mortgages and all cash from maturing mortgages used to realize the potential of non performing assets in the fastest possible time frame or interest bearing guaranteed investments.
5. The market will learn this is not a liquidation scenario when we don’t accept low ball purchase prices. There is no time frame to wrap up this business venture
6. At the end of 2 years evaluate cash on hand and cash required and start distributing non required cash pro-rated to all shareholders.
7. Pay relevant staff to run the company.
I realize it isn’t that easy with legal and statutory requirements and practicality; but I think maybe doing nothing and maintaining the current structure is the closest to my wishes? Am I correct?
Dianne 519-741-6291
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barb
Junior Member
Posts: 11
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Post by barb on Mar 29, 2020 16:21:23 GMT
elizabeth , if I understand correctly the first step of your solution is to replace the current CEO and the other executives with a competent team. To be honest, that is the only solution that could save the fund. But HOW can we replace the current Directors? The money in the fund is ours but the company is their.s Even more complicated with Robert Mitchell and his group. They are investors, how to kick them to the curb? This part is not clear to me
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Post by nemesis on Mar 29, 2020 17:18:22 GMT
The Robert Mitchell group was 'founded', so to speak, to alert as many investors as possible to the implications of moving to a new plan of arrangement ie. A/B shares with dividends going to the A shares and no dividends going to the B shares. The time required to deal with real estate - development and sales - was always vague. In fact, most did not even understand how many mortgages had gone sideways and the result - acquisition of properties. The Mitchell group worked to inform investors about some of the key points before the 'vote' took place in November. The plan of arrangement was a long and complicated read and lacked financial detail. At the end of the day, the 'vote' was postponed because there was not a majority willing to move forward with the arrangement.
As of today, many investors believe that splitting the shares into A and B shares is still not the way to go. The belief is that the mortgage side of the business should be wound down. As mortgages become due, the cash should be distributed to all investors. Those who still believe in the viability of HE MIC could reinvest again. No new investors and no new mortgages until the current mortgages are paid out.
The real estate side is going to be obviously longer term in today's climate. I don't think anyone knows the true value of the properties or their value in the future. At the very least, it seems reasonable that any properties that are in the current portfolio which are sold - the proceeds should also be distributed to all investors. It has been postulated that there is enough income coming into the portfolio (rent from finished residential for example) to cover the cost of current operations. Again, current investors who believe that they will reap the long term rewards of a development company, could re-invest their cash into HRAC.
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adam
New Member
Posts: 5
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Post by adam on Mar 29, 2020 17:40:58 GMT
It's being a recurring dream for me to see Larry Dunn replaced by somebody competent; this is the usual solution when the business goes down, replace the CEO - it's the towing truck getting the vehicle out of the ditch not the guy who drove it there I applaud you, elizabeth, for the courage to say it Robert Mitchell is my Hero; he did nothing else than share with us the analysis of his group. Lots of volunteer work. Same goes for whoever is running this forum. I am lazy at posting but I promise to do more I agree with nemesis and the Investors looking to get out asap with minimum damage to our capital (NO forced liquidation). To invest in construction business NO, thank you, I am too old for that. I need my money from RRIF - ASAP
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Post by nemesis on Mar 29, 2020 17:53:21 GMT
Hi Adam, Look forward to your posts! Many of us received an email from investorshe@gmail.com a few days ago - we were asked to give feed back whether we agreed or disagreed with the proposal to management. It would be helpful if our fellow investors took the time to respond.
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Post by maryanne on Mar 29, 2020 19:37:32 GMT
1. Kick Larry Dunn et all and Robert Mitchell et all to the curb. Eliminate the players to create a workable environment maryanne : HE needs a change of guard to function again. I am totally confused on kicking Robert Mitchell and other investors to the curb? HOW?2. Create a board of current investors with mortgage and real-estate experience maryanne : Do we have among us fellow investors that are skilled and willing to take this role?3. Run HE as a closed private company, no redemptions for two (arbitrary) years, continued monthly distributions as long as performing assets available. maryanne : This is the business model that we had been forced into in the last 4+ and, in my opinion, it didn't work very well 4. No mortgage renewals or NEW mortgages and all cash from maturing mortgages used to realize the potential of non performing assets in the fastest possible time frame or interest bearing guaranteed investments. maryanne This doesn't work for me at all, I MUST convert LIRA into a pension (this is the law) as the max age for conversion is approaching and I need money for living. As I was on DRIP, I have very little cash in my LIRA account, so I’ll take my pension in paper money and then pay tax on that! What is your solution for my case? Two MIC solution is more realistic in this regard, it gives me the money and let me decide what to do with it: walk away or re-invest in HE.5. The market will learn this is not a liquidation scenario when we don’t accept low ball purchase prices. There is no time frame to wrap up this business venture maryanne I hope we realize we are in private market, not the stock market. When HRAC properties are listed for sale in Atlantic Canada, do you think the buyers would jump on those, offering yard sale prices? I heard this fantasy before but I need more arguments to believe it6. At the end of 2 years evaluate cash on hand and cash required and start distributing non required cash pro-rated to all shareholders. maryanne You totally lost me here; distribute cash from real estate sale? 7. Pay relevant staff to run the company. maryanne The entire HE staff would be replaced? I kind of like Sean Dwyer, he is doing lots of work around. Can we keep him? I realize it isn’t that easy with legal and statutory requirements and practicality; but I think maybe doing nothing and maintaining the current structure is the closest to my wishes? Am I correct? maryanne Are you aware of a legal path to accomplish such a big change? I mean, is it feasible?Dianne 519-741-6291 HE needs a change of guard, I like your first
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Post by elizabeth on Mar 30, 2020 0:21:12 GMT
My comments were only my preference given I am an investor that is wanting full capital and income returned and has time to see that happen. We would need the current players to willingly step aside and/or support a new management team that can hopefully move us past this stalemate.
I personally need to decide if I will go along with management's suggestion and currently i am considering the status quo maybe the answer. I know I won't get my preferred solution but we need to move on. That was the point of my post.
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