Big Hamish gave himself to 31 August for the ASX investigation, tge June Quarterly is due end if July, and that's going to be ugly
The way he describes it, is that GMG borrowed both loans, to fund the project and there's no liability for each parent company to repay.
That means no 5.5m debt for GMC, but also they lose their loan of 16m to GMG.
GMG goes into VA, smelters are sold off etc, whatever proceeds they get are paid to lenders in that 75% and 25% ratio.
So basically call payment of the 5.5m, and he calls payment of the 16m loan, projects dead, but hey at least there is no requirement to repay 5.5m right?
It's a dangerous game to the tranche 2 investor (who's also a top 3 investor, and a very wealthy
businessman), and i can't imagine it ending well for GMC.
ONE HAS BILLIONS AND ONE HAS 0 CASH.
Options are pretty simple, find someone to buy them out of the project and 5.5m debt (anyone insane enough to take over this would mean massive dilution as they'd want ownership of the parent company gmc) or let it blow up and focus on Timor.
Either option may never eventuate, as it's unpredictable how the ASX interprets the solvency situation. It may never be allowed to trade again. 50/50.
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