As I posted previously. GXY purchasing the debt out it in full control of the reorganization process. In my opinion the most likely result will be an equity carve up between Jiangte and GXY. I assume GXY will look to convert its secured debt to a favorable equity position - similar to the proposal that the AFR reported Turnbull and Co were considering, while Jiangte will likely contribute further funds for equity along with some other major holders who want continued involvement. I expect GXY to end up with more than 50% of the reorganized entity from their existing equity and the secured debt holding. I don't see any likelihood of A40 returning to operate under Mark Calderwood or its BOD. Time will tell. AIMHO
GXY Price at posting:
$1.22 Sentiment: Buy Disclosure: Held
