The explicit statement from SGH regarding their contingency plan in the event the proposal is voted down is as follows:
" . . . SGH’s control of Nexus’ senior debt will enable SGH to control the voluntary administration called by Nexus’ directors"
Can anyone with knowledge of corporate law and the procedural framework by which VA takes place comment on exactly what this claimed "control" means in practice? - Does it simply mean they can put NXS into Administration? - Does it mean they have the power to appoint the Administrator without reference to shareholders (i.e. one who will do exactly as they want with the assets)? - Does it mean they have the power to decide who assets are sold to and at what price without reference to shareholders (i.e. they decide to sell assets to themself for whatever price they feel like offering)?
Certainly, I am expecting there are limits to this "power" but obviously many of us here would be interested in any specific clarification that can be offered on this.
NXS Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
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