Been thinking. I think the most likely outcome this late in proceedings is that some of the bondholders will convert to equity (for example, Fengli, who has links with the board and a stated intention of acquiring Lithium reserves) whilst other bondholders are paid back out of cash. A mixed approach was also suggested in a previous interview with GXY management if I recall.
If the bond were going to be rolled over, you'd think they would have done it by now. And if they were planning to go to market to raise new equity, word would have leaked, and the shareprice would not have continued to trend upwards (unless its being supported by insiders through offshore vehicles).
This outcome (some bondholders converting to equity, say at 5-6 cents), and the new equity going to a few large holders, might actually be the best outcome, as raising equity in the market holds the risk that those who get the new shares at a discount don't hold onto them.
GXY Price at posting:
7.4¢ Sentiment: Sell Disclosure: Not Held
