a difference a day makes, page-34

As I read the announcement, GBG and Ansteel have both given KML $30m in April, but GBG is broke and Ansteel are going to loan them their $30m contribution back. We need to pay them back the $30m (not $60m) + 6% interest within 12 months. Fail to do so and Ansteel can convert not only the $30m loan to GBG but also their $30m loan to KML into KML equity. They will get another 4.51% of KML (effectively 9.02% of GBG) for $30m (not $60m - remember they will have only paid $30m more than GBG). So this deal will mean Ansteel getting another 9% of GBG (I know it's actually 4.51% of KML but basically same thing) at 22c.

For all of the naive holders out there that think Ansteel is some white knight who is looking after the little brother, please take the blinkers off and wake up and smell the roses. Ansteel has their foot on the throat here, it is not a partnership anymore, massive imbalance in power and Ansteel have GBG by the balls. It feels like a game of poker when you're down to two players and the chip leader is so far ahead that the result is inevitable and it is only a matter of how many hands?