All over done and dusted, page-515

Hi AICp

Re: " ... the numbers they disclosed in the lead up and after the VA doesn't indicate it's assets is only worth $250M USD ... "

I disagree.
My read of Ferrier Hodgson's 29 March 2016 Report Pursuant to Section 439A of the Corporations Act tells me different.
https://www.ferrierhodgson.com/au/-...ers/mirabela-nickel-ltd/mbn--s439a-report.pdf
Refer bottom of Page 42 where, in 2015 the company had Total Assets of only about $110M

So to get an offer of $250M implies a goodwill component of $150M;
- Not bad given the circumstance?
- And why would any buyer pay extra for the risk they are buying (safety, customers, nickel price etc)?
- And why would any buyer pay extra for the benefit of the work the are going have to pay for anyway (wages, fuel, freight, equipment, repairs etc)?

Re: " ... if they play it right they could have sold it for 3x that and their managers earn a very healthy bonus."

Whoever buys it probably will sell it for double what they pay - once they get it going and provided they buy it for a cheap enough price. Especially if it's the creditors buying it for themselves - nothing illegal here - provided theirs is the best bid. According to QC the buyers of financially distressed businesses are often the secured creditors. According to KM the whole operation and assets has been very difficult to find any buyer for, let alone at a price that would meet the amounts owed to the secured creditors.

The part that's been highlighted that does stink is where Ferrier Hodgson have commented [again from page 42] "... the Group has been net asset deficient since as early as 31 December 2013 where a deficiency of US$226.5M was reported ..." IE They were insolvent from then [2013], while we were holders [2014-5] and through to and beyond suspension. What ferrier Hodgson show on page 42 needs to compared to the last audited accounts as we were shown for the end of 2014.

Regards, LP