I'm now doubting the whole thing was ever viable as no majors to date seem interested.
The fact is it is hard to see those majors being interested while the JVA exists with HNC - The JV docs are complex and subject to confidentiality agreements so can't comment further except to say it makes it too hard and to risky for a major.
The impass is that our corporate laws make it so hard for shareholders to save a company once administrators are appointed
Unlike the stock market administrators value a company on exacting things and give no value to the "speculative worth" or future worth of a company so they end up with ridiculously low vlations- and that's why they NEVER return 100 cents in the dollar to creditors
We are still working hard as on this but what I will say is t is terribly unfortunate that our corporate laws don't see shareholders as a source of resuce for a company once administrators are appointed.
The difficulty also is that HNC have no real motive to talk or work with anyone - they can if they chose just string this along as much as they want - eventually the company will be liquidted and they pick the assets up for tuppence. The most logical way out of this is for a shareholder driven solution where arrangements are made to pay creditors out - and returnt he company to the control of shareholders - appoint a new board - have the company readmitted as non defaulting JV partner. We then put sharheolders into a position of strength - it maybe that we would decide to renegotiate JVA percentages or other things in exchange for cash or debt relief etc etc - lots of things would be open to negotiation then but the difficulty is our corporat elaws make it so hard for sharheolders to participate in the solution
Hag in ther and try to keep some faith
CMR Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
