Odd how so many posters still believe call in the VA was a move to protect shareholders. It seems apparent the KordaMentha advised the board that given their only offtaker had fallen over they would now be trading insolvent even if they managed to delay GXY calling in receivers by a few week. The secured debt was not the company's only concern. Do people think KordaMentha would have advised the BOD to keep trading while insolvent on the hopes of working out a deal? The only leverage GXY had at the time was the threat of placing the company in receivership. This happened within 24 hours of the A40 BOD putting the company in voluntary administration. Mark Calderwood lost control of the company the moment he called in the VA and unfortunately the shareholders lost the vast majority of the value of their holdings. I understand that some are hoping he will put together a proposal to the creditors to win it back, but frankly that sounds like a long shot.
A40 Price at posting:
8.2¢ Sentiment: Sell Disclosure: Not Held
