Unfortunately I did not react quick enough to dump my shares and thus still holding.
IMO VXL are beyond hope and much of any money raised in a RI would simply go into paying trade creditors (including director/staff termination payments) and Chimaera all of what I feel is money down the drain (particularly termination payment - CD's is 12 months pay - $371,000). Only a small amount of the cash ($7m) would go into plant improvements (I think they could stage the improvements and save some of this for working capital). As far as I can see the best solution is for VXL to go into liquidation and attempt (possibly via SER) to buy the company (in a fire sale) from the liquidator. This way the capital needed would minimized and be about $7m + the cost of buying the company from the liquidator (say $3m). Hopefully SER would be the only bidder (although the Asia Pacific customer for Uley graphite would be a useful partner in a fire sale bid). Ideally get Mencel and Whiteley on board and then attempt and potentially file a legal action for infringement of disclosure obligations on the old directors (and also Watson lawyers). I understand that aushed said that the SER board were meeting on this issue - can you let us know the outcome?
VXL Price at posting:
11.5¢ Sentiment: Sell Disclosure: Held
