via ReadyRatios.com - Quasi-Reorganizations

In reflecting on which specfic laws under the Saskatchewan Business Corporations Act would refer to any restructuring of the capital of Golden Band, the clauses of reorganization would appear to be the appropriate clauses under the law regarding company perogative, meaning what they're able to do under the law.

We might be seeing an amalgamation, a plan of arrangement, a step-acquision or some scheme involving a special acquisitions corporation, but the SBCA specifically refers to re-organizations. and we haven't seen anything such as a court proceeding for any procedure mentioned.

You would expect, as I did that a specific model of reorganization would be found under IFRS accounting manuals at PWC that detalis the transactions, but in reality quasi-reorganizations resided under GAAP before IFRS and comtinued relatively unchanged under the new accounting rules. So quasi-reorganizations(as opposed to restructuring) would also fall under the SBCA.

Reading the article from ReadyRatios gives you a clear idea just what quasi-restructurings are:

http://www.readyratios.com/reference/business/quasi_reorganization.html

This sounds like it, doesn't it?

It was easy to find an example under IFRS, but a very specific model can only be found on a password-protected portion of the PWC website:

http://bit.ly/2daMcSU

But as luck would have it, a GAAP-based model is still available on the web, which detals exactly how this type of restrucuring is treated in the balance sheet:

http://bit.ly/2ema5aR

http://bit.ly/2em9x4N

This last week, we saw a reduction of the paid-up capital by the retraction of 50% of the float, which is probably due to be cancelled, and we see the probable method the company may be using to re-emerge from reorganization under the BIA.

Doesn't this just sound too much like the proceedings of late?

http://www.investopedia.com/terms/q/quasi-reorganization.asp

And a quasi-reoganization does not require the company to proceed through the courts.

-F6