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Ann: Administrators Appointed, page-121

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02/07/24

08:28

Post #: 74558998
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Originally posted by Aqil: ↑

The only thing working in favour of shareholders is that winding up of assets is unlikely as it would result in a poor return for both secured and unsecured creditors.

The assets would need to be sold for amount equal to the loan principal and loss on the hedge book for MAQ to recoup their potential losses: both of which have a combined value of $150M. It's unlikely we will receive bids that allow MAQ to settle their exposure. Plus, MAH whose actions prompted the appointment of administrators, would receive no return on their $40M exposure.

Recapitalisation would yield a better return for creditors in the long run and this path would see shareholders retain some value.

I would love to see if the 'unsolicited approaches by various institutions to refinance debt' come to the party or if DR was talking nonsense.

Who would have thought that low grades could potentially work in favour of the shareholders.

Expand

You still don’t get it do you?

The operation doesn’t make money.

Once the Administrators determine this, it will be shut down and put on Care and Maintenance.

The historically reported AISC have been cooked up, manipulated and are not a true and accurate reflection of actual costs.

The operations do not make money mate, plain and simple.

CAI Price at posting: 11.5¢ Sentiment: Sell Disclosure: Held
4 Upvote

0 Great analysis

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