So here`s the deal as best I can figure, lets start with the voting share, first off the owner of the voting share has the power,the power to appoint four directors against the province only being able to appoint one, the directors can set policy...Direction of the company..and the directors can set compensation levels, the province, the comptroller general,the shareholders(us) have no say....No say on who is appointed, we have relinquished all oversight to this private group,and.....This group is there to oversee financial matters, their priority is "not the public interest", and to buy this voting share, to attain control its clear that we would have to buy all of the massive debt and obligations this quasi private company has accumulated.
Here is from Nelle Maxey..A ex Powell river persuader (The raging Granny)...Nelle spent 18 years in business,most of which required detailed analysis of government funded contracts, Nelle said she understands the documents better than most people," I`m well-versed in corporatese" she said "and how the Chief Ferry Agreement is framed she thinks the agreement presents insurmountable problems to making BC Ferries a success as a private company....While net earnings were 71 million in (2008) they owed 33 $ million in interest,leaving a 37 $ million in earnings.
BC Ferries are headed for trouble as they may not be able to continue paying interest on the loans to the consortium of banks that have contracted mortgages to finance the company...And...
"Once those two lines intersect (of declining revenue and rising interest payments) your in big trouble"
And that`s exactly what happened this year, for the reported quarter...April,May,June of this year, the Private Ferry company fell short....Their (BC Ferries) earnings were roughly 3.6 $ million dollars shy of covering interest payments and operating expenses, and now they have cut sailings in an attempt to save 450 Thousand dollars...The least of their worries.BC Ferries interest payment on their debt is over 51 $ million dollars this year, up from 33 $million last year,that trend is disturbing.
Nelle Maxey goes onto say....If debt outstrips income,said Maxey,there are only two options for BC Ferries...(the first) is that the province bails them out..."Which makes you wonder why they privatized in the first place" The Second option is the banks call in their loans and effectively own BC Ferries, though the province has the first option to buy back all the assets that have been mortgaged. She went on to say...Whether the province buys them out,buys back the mortgaged assets from the banks,or they are sold to a third party, it will cost the taxpayer..."It will cost a lot of money because they are in so much debt" she said.
And she said "BC Ferry commission is designed to oversee finances,NOT to look out for the public interest"
My friends..It`s like a credit card this interest, BC Ferries seems to be paying only interest payments, no principle,what happens if you only make minimum payments on a credit card....You never pay it off...BC Ferry debt has ballooned to 1.4 $ billion plus.
So here we have it, we can`t FOI BC Ferries, the auditor general can`t investigate,the Ombudsman can`t investigate, the owner of the voting share controls the directors,controls wage levels,policy and direction, BC Ferry debt is ultimately our debt, but the most disturbing part of this THING....This Deal...This Sham...Is
The Debenture...A debenture is used for raising capital, the debenture,from everything I have read is...It`s a very special financial instrument used for raising capital, a Debenture has no value,it is neither collateral or cash....A debenture relies on the "Trustworthiness of the backer" In other words.
The province gave BC Ferries a debenture(A note saying we will back up BC Ferry debt) BC Ferries borrowed money with help from the debenture,which brings me back to the (Debra Marshall letter)..."The Province gave BC Ferries a debenture in april of 2003 and BC Ferries agrees to re-pay in CASH"....(Isn`t that worded funny)....They(BC Ferries) will repay in cash,which BC Ferries did, 14 months later,so the province gives a (my buddy`s good for it debenture,with no value) to BC Ferries....And BC Ferries pay back the province 427 million plus 25 million interest in cash! one year later)
They also gave the province 75 thousand shares worth 75 $ million, but here is where it gets interesting, all the boats,terminals,all BC Ferry assets are mortgaged to the hilt, and ...This debenture was a capital raising financial instrument, and, who got the money raised, BC Ferries paid the province with borrowed money,they only made 17 million in 2004...So how did this debenture help BC Ferries? We owe separately for the new vessels, the debenture didn`t pay for a new terminal or new boat, the money that got raised was given to the province with the debt on BC Ferries books! Where did BC ferries gain anything? Or....And I have some people searching this information out as we speak.
Did the province take 460 $ million dollars out of treasury and put it aside for this debenture and just get paid interest on this money or is it as I suspect that no money was set aside for the debenture,the province created the debenture to raise capital,not capital for BC Ferries but for capital for the province, did Gordon Campbell trade dollars with BC Ferries or did Gordon Campbell just create dollars out of thin air?
And, the debenture was used for a reason,the debenture was used for BC ferries to borrow money,did they borrow double the debenture amount?Nowhere in the books does it look like they borrowed over and above the debenture, the debt for the three new German ferries is separate and held by German banks hmmm.
So we can`t FOI..Can`t control direction,policy,wages,we can`t protect the public interest,we don`t own the voting share, we are on the hook for all BC Ferry debt anyways, why was it privatized? A sham to raise near 1/2 billion dollars to put in his pre 2005 election budget?
If the province created a debenture to raise capital for the provincial budget under the guise of a cash out,cash in loan,but in fact there was only cash in towards the province and nothing but debt put on our BC Ferry compamy....Well...Surely that can`t be legal,ethical, but with BC Rail sold...BC Hydro shenanigans,and another 1.6 billion sell out to help save Campbell`s newest record deficit. In other words....The provinces gives me a debenture,(a trustworthiness note) I take this debenture and borrow 500 $million dollars, I mortgage everything that I own, I take the money I borrowed with the help of the debenture,and I return the 500$ million to the province, the province ends up with 500 $ million and I wind up with the 500$ million dollar debt, where do I(BC Ferries gain anything)?
Was the privatization of BC Ferries (with all the bad consequences)an elaborate scheme to merely raise money for the province and Campbell`s budget woes in fiscal 2004/2005?
When I get the answer to my last question you will be the first to know!
The Straight Goods
Cheers-Eyes Wide Open