The first French shareholders’ association, RegroupementPPLOCAL, counting 1400 members, has tabled succesfully several Directors dismissals and several nominations, a situation which creates a milestone in French corporate governance. After several meetings between the two parties and even a attempt of AMF to facilitate the dialogue, the disagreament remains as the company changed only marginally its complex original financing plan. This plan, slightly improved, still reserves the bulk of the cake to the company's creditors (see our previous stories). While no longer claiming another 400 million cash from its shareholders, the plan keeps creating massive dilution for the benefit of lenders receiving warrants at 2€ in addition to their 8% annual interest rate on a discounted debt. The last transaction proposal from J.P. Remy was even made public. It offered a seat at the Board to two members of the association under the condition of their approval of this adjusted plan and, similarly, two seats to two creditors’ representatives, John Slater partner at Paulson, and Dominique D'Hinnin, the former CFO and Co-Managing Partner of Lagardère SCA, a usual suspect here. These will have obviously no qualms about this great shareholders robbery by creditors. Needless to say, the targets of the proposals, Anne-Marie Caravo and Alexandre Loussert, were up to their reputation, and declined to support a betrayal of their fellow shareholders. We advise you to read the excellent press release RegroupementPPlocal in response to J.P. Remy's proposals. The challenge for Solocal shareholders still seriously threatened by this anti-saherholders Board, which litteraly sacked the market of the company stock in order to offer shares at lower prices to creditors, is now to make sure that their proxy forms go to RegroupementPPlocal for the October 19th general meeting. The attempt to oust this Board supported by hedge funds and to push for a better deal is open.
