Ann: Administrators commence recapitalisation process, page-115

While I don’t envy the position of A40 holders, it irks me a little when posters talk about the “rushed/botched” attempt by GXY.

While GXY clearly had a long term interest in A40 assets, I don’t think anyone intended it to go down this way. GXY had already invested over $40 million in A40, what other option did it have to protect it’s investment, other than to purchase the Tribeca debt? The only one I can think of is to continue participating in another A40 cap raise, but this would have been as good as flushing money down the toilet given the recently revealed rate of spending by MC and co.

As Simon Hay watched A40 circling the drain, he would have been acutely aware of the possibility of another interested party purchasing the debt and taking primacy as the secured creditor during liquidation. This would have resulted in losing pretty much all of GXY’s existing investment in A40, hence the purchase of the debt.

Yes, GXY could have granted more than a week for A40 to explore recapitalisation options; however, this clearly would have been at a huge detriment to GXY as the largest shareholder, and again, would have seen our $40 odd million investment reduced to basically nothing. For what exactly?

I would have much preferred to see A40 thrive and GXY receive capital gains from a wise investment. Everyone would have benefited and all would be good. Alas, MC ran the company into the ground, and A40 holders see GXY as the bad guy.