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clock Created with Sketch. 25/03/18
09:09
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Originally posted by ruff
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Mate I didn’t, but as a significant shareholder, I spent months trying to convince John Corr not to take it into administration right up to the day before the final meeting. Here’s a guy in a conservative income fund , happy to take his 10% interest which AZZ had never defaulted on even through the GFC , then suddenly oil goes from $120 to $20 and everyone cry’s crook . They did have an on market buy back for the notes at $2.00 which no one sold into because they were happy with there 10%. Aurora as the main note holder had about as much knowledge of the shale industry as I have of sowing clubs. They just wanted the yield.That was a big part of the problem. He had convinced other big noteholders that they would get their money back . What he didn’t mention was that Aurora was under extreme duress, google their latest developments, they can’t even afford to pay out redemptions. Sadly their was always another motive. I know JC is no saint but for him to get any value from his 12m shares , he had to preserve the asset AND PAY OUT Noteholders. They were offered better terms , sure it involved an interest free period , but better conversion at lower price.
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At the last Creditors' meeting, the Administrator advised that AZZ's leases were NOT of great quality and therefore not worth funding; they were on the edge of the good areas. I therefore put two and two together: JC couldn't sell the project to the 200 parties who expressed interest, and so, no value to anyone; no value to AZZ; no point in continuing with the charade.
