Sent: Wednesday, May 06, 2009 5:17 AM
To: Block, Peter
Subject: What happens now
Look Comm winds done in 90days, the last payment for Look Comm takes 36mths ...what happens here if we don't have any company?
I really don't see any payout for shareholders here after all deals are completed, now my concern is if even UBS will remain a viable company.
I have lost quite a bit in this investment presently and please I am only seeking a simple straight answer to this dilemma.
|
RE: What happens now
Wednesday, May 6, 2009 2:27 PM
ooooo,
Let me clarify what the two periods of time represent.
The 90 days is in reference to Look’s current operations of providing internet and television services. The company is planning an orderly wind down of that and in the process, will explore what, if anything, it can do with its 25,000 subscribers.
The 36 month period is the outset of the length of time to close the Inukshuk agreement. If the Court approves the transaction, Inukshuk has to pay Look $30 million with subsequent payments due on December 31, 2009 ($20 million) and upon the receipt of regulatory approval of the sale of the spectrum (or 36 months, whichever comes first).
If Inukshuk does not meet its timetable or if Industry Canada does not approve the transfer of the spectrum, Look keeps the asset and any cash received. Presuming the deal does close, Look would then consider what its future options are and what it will do with the proceeds. That decision will have an impact on UBS as well which would presumably be making similar deliberations.
I hope that helps clarify things.
Regards,
Peter Block
Investor Relations
