That makes some sense. However, I don't agree that they decided not to issue to instos. The instos were probably not interested scared off by the clear downward momentum and small cap sector malaise.
As for asset sales, these things are not simple or quick. We can't assume management chose not to do this. However I do see a big problem with Deutsche being the conduit for this process. If they want shortfall shares they can foot drag.
Management wouldn't have chosen this position to aid a takeover. Their own survival is at stake as a result. However, they got themselves in a major pickle and are now at the mercy of the big fish, trying to save their own skins through whatever means.
It all went pair shaped when Deutsche got involved with the issue of the cheap shares. Do Deutsche still have their full allocation from that CR?
I am starting to think administration might be best.
GXY Price at posting:
7.8¢ Sentiment: None Disclosure: Held
