The Administrators are seeking direction from the court on Tuesday 22nd with respect to ownership of funds that are held in View Gold accounts. I don't quite understand all the legalise but clearly the administrators want these funds for View Resources rather than View Gold. View gold is the trading entity that operated Bronzewing and is more directly subject to the creditors claims. The funds involved are essentially from the sale of gold and GST rebates and would normally pass back to View Resources to repay inter company loans advanced to fund View Golds operations.
The documentation in the Application and Affidavit of Andrew Saker makes interesting reading. Unfortunately it is too detailed and complex to report here and some key information on asset valuation is not disclosed to the court for "commercial sensitivity" (obviously because of negotiations involving the sale of Bronzewing I would think).
The wheel is turning and clearly seen in the documentation that there is no intention to liquidate View Resources or View Nickel and that IMC through Austral are seeking to fund a restructure of VRE. Investec was the only secured creditor and IMCs funds have now discharged the Investec Loans 12/3/08.
Reading between the lines I think the unlitmate plan is to liquidate View Gold to pay creditors but ensuring by court order that View resources are first repaid the inter company loan.
The issue has gone to court for direction because Ferrier Hodgson perhaps have a conflict of interest in determining that the loan should be repaid prior to creditors being satisfied.
Hope I've got it right.
Add to My Watchlist
What is My Watchlist?