oh yes the coal mine... don't make me laugh... how are they going to pay for it? Oh yes, here you can have this big debt that Fortitude owes us and we'll take your lovely coal mine. Pardon? Oh... you want to know how Fortitude is going to repay the debt? Look why don't you have a tim tam, everything will be great...
There are several possible paths forward and none of them a garunteed to work given the shocking position MS has left us in. However I'm pretty confident that none of them will be tried by MS. I'm not going to outline them here because that would almost garuntee that those paths could be closed off by those who don't want them to happen.
ask yourself Kevin, why was the rights issue money given to Fortitude as a loan which has risk of default? A very high risk given that they were going to spend it all straight away and had no plan for raising further funds to get to cashflow. CVI's stated goal for 2 years was to become a majority holder of Fortitude. Why didn't they give the money in exchange for equity? It would have put us well over the line...
CVI Price at posting:
0.7¢ Sentiment: None Disclosure: Held
