This is madness, bwhahaha all high fiving each other and the...

This is madness, bwhahaha all high fiving each other and the details of a restructure has not even taken place,"no """assurance""". with the company stating in the latest report and i quote.....

"""At the date of this report, no binding agreements for the restructuring of Mirabela’s debt obligations have been
concluded nor has any opportunity or arrangement sufficiently progressed to be announced to the market. No
assurance can be given at this stage that any definitive agreements or arrangements for a comprehensive
restructuring will be reached with any party with which the Company may be in discussions."""""


From my experience when a company enters a long suspension regarding debt defaults and recapitalisations the scenario is as follows.The below scenario is of course only applicable if the company escapes administration:-

A) The company enters a Debt restructure with banks and noteholders.

B) The company issues shares on a very low basis to noteholders and or lenders to satisfy a Debt or hold off any further action, ie debt standstill.(existing shareholders may or may not participate in this release, however generally existing shareholders will be offered shares post consolidation, see note C)

C) The company does a large capital consolidation and then issues shares to sophisticated and existing shareholders on a post consolidation basis.

D) the company is the relisted,however existing shareholders who do not take up their entitlement will suffer dilution to whatever degree the recap and reconsolidation is set at.

This is a simple guide of many other company recaps that have occured in similar circumstances and in no way points to events to transpire for MBN nor is this advice.

Please seek professional financial advice before making any decision either way.