Paladin gravy train, page-13

While people are looking at the bond problem, what seems to be missed is the cashflow problem. They might survive this quarter, but how about next quarter if the POU stays at current levels or goes down further.
This is especially true if the Namibian govt does not return the VAT owed.

They don't have one problem of the bonds, they have multiple problems and a cash shortage to go with them. 10 years of losses has tapped out any chance of a cap raise, and the bond holders would know this, so what options do they have other than to call it in.
The bank that just gave them a $25M credit facility to see $20M drawn with negative cashflow, would have their eyes on the POU.
EdF with $200m and not the security they were expecting asking for more, but there is none to give.
Long term board members leaving a couple of months ago with nice golden handshakes, is reminiscent of rats deserting the sinking ship, and tells me they knew then the cause was lost.

Some of us are not shorters, we just hate to see people throw good money after bad. I've seen and known too many people that have lost vast sums by following good companies into VA to then find that the cupboard really was a lot more bare than they thought, by the official numbers.
Even before the bond issue, the cashflow is a current problem, just as big. Too much debt and negative cashflow never ends well for the little guy.