The Globe and Mail reports in its Friday, Aug. 26, edition that a takeover proposal to rescue Twin Butte Energy is in jeopardy as debt holders angry over the prospect of a major markdown in the value of their securities vow to reject the deal. The Globe's Jeffrey Jones and Jeff Lewis write that holders of Twin Butte's convertible debentures have appealed to other investors, arguing the proposed buyout by Hong Kong-based Reignwood Resources will result in them getting shortchanged. The debt holders, led by Bockhold Investment Management Group, say they should be afforded more money as a senior security class and that shareholders should get nothing. Twin Butte says the arrangement is fair to all stakeholders, and that rejection stands to push the struggling company into receivership, as it has no other deals waiting in the wings following an extensive search for buyers during the worst of the industry downturn. Stakeholders are slated to vote on the transaction on Monday, following a 19-day postponement. Reignwood has offered $21.3-million for the shares and $12-million for the convertible debt, translating into just 14 cents on the dollar for the notes. The company also has about $223-million in bank debt.