- 12 -
debenture principal, premiums, interest, and the sinking fund, as
well as the conversion of the debentures.
Debentures which had been either redeemed or converted could
be delivered by Metals or RMECC to the trustee with an Officers'
Certificate to receive additional credit against the sinking fund
payments.
In the event that RMECC made a call of redemption under
section 5.01 of the indenture, RMECC was required to deposit with
the trustee enough money to redeem all the debentures called for
redemption (except for debentures converted prior to the payment
date) plus the accrued interest. The indenture did not require
RMECC to deposit money with the trustee for the redemption of
converted debentures. After a call for redemption, the indenture
provided that the trustee would repay to RMECC the money that was
deposited with the trustee for redemption of debentures but was
not used because debentures were converted.
In 1970, CBA was amalgamated with CRM Capital Limited
(Capital), a Quebec corporation, to form Canadian Reynolds Metals
Company Limited (CRM), a Quebec corporation. In the
amalgamation, RMECC received all of the issued and outstanding
common stock of CRM. Under CRM, the production capacity of the
Baie Comeau plant increased from 175,000 tons per year in 1970 to
over 300,000 tons per year in 1985.2 In 1983, CRM expanded its
2 As noted above, at p. 5, production capacity in 1968 was
(continued...)
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011