Originally Posted by
Chuck Finley69 They don't have to be fully aligned. Shareholders can't agree on everything so it's the golden rule. The person with the most gold makes the rules. As far as board seats go, board members aren't exclusive to shareholders. The company was on the brink of failure. Closer to filing bankruptcy than most realize. The board knew this and they knew that creditors and other vulture capitalists were circling. It's a reason, no actual buyers emerged and even Fairfax pulled their offer. Any lines of credit and other short-term lending the company utilized contains debt covenants which if violated, then could trigger bankruptcy proceedings. Very likely, this caused many interested parties to predict, assets would be purchased much cheaper.
Again, BB was in a bad position with no realistic options. Third down pass was dropped in the end zone, quarterback was pulled out injured, field goal ties game, and best kicker in the league joined team day before the game.
C
In bankruptcy, you pretty much cede all control to lenders and equity is wiped out. Shareholders chose Fairfax and Watsa because it was the only deal on table.