It doesn't matter what PH cost to build, or what it's really worth. I agree with you both, PH is worth much much more, but, it is not a sellers's market, and OZL are in no position whatsoever to bargain...it's a very simple matter of paying debt, or administration....and it's a very simple proposition any would-be buyer of assets would put forward..."this is our offer...take it, or we'll pick it up when you're in administration anyway".
Now, you can both tell me what would be a better outcome? The company folding, or selling PH at a figure that would erase debt and possibly leave some change.
I have no doubt the offers for PH will be low...and I doubt any of the other assets would really stimulate much interest, certainly not enough to erase debt in any case.
IMO it's
a) A capital raising and selling Martabe, or b) BHP picks up Prominent Hill on the cheap.
The former would obviously be preferential for holders I would think, but failing that, the latter would at least leave the company in the hands of the shareholders, and not the administrators
OZL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
