Louvem shareholders reject special plan

Under the arrangement proposed to Louvem shareholders, each existing Series A first preferred share would have been replaced by one common share and one Series C first preferred share and all accumulated dividends on the Series A first preferred shares would have been forgiven.

The new Series C first preferred shares would have had conditions similar to those of the existing Series A first preferred shares, except that the cumulative dividend would have started to accrue eight years after the arrangement became effective.

During the 8-year period, each series C first preferred share would have been convertible into 1.852 common shares and later 0.5 common shares.

Louvem management says it plans to meet with representatives of the holders of a major block of preferred shares to fix the term of a new arrangement acceptable to both common and preferred shareholders.

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