You guys have it all wrong. 1. The Directors called in the administrators because they did no longer wanted to be held at ransom by the banks.
2. The company called in the administrators, not the bank. The company is not in receivership it is in voluntary administration.
3. The loans are now on hold therefore AFG is no longer required to meet the strings that were attached.
4. The administrators can now concentrate on realising true value for the assets (no fire sales are required) and unwinding the structures in an orderly position and running the company.
5. The administrators can decide that once debt levels are manageable the company can continue to trade as a going concern.
6. The banks were willing to grant the extension. The bord of directors voted against it because it was not in the best interest of the shareholders to be held at ransom by the banks.
7. Interest rates are coming down so will AFG interest bill.
8. AFGHA holders will rank in front of AFG holders and will likely see some money if everything is sold.
AFG Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
