A40 (ASX) Ann: Administrators commence recapitalisation process

Originally posted by nzsyrahman: ↑

Yes, that was also my sense reading their update. They clearly want it though, and talk about its quality and the demand for the bald hill spod from customers. That they have also gone to the trouble of spelling out in some detail the process of determining the full range of outcomes from the creditors meetings - highlighting that they may not end up with A40 in the end (apart from being paid back their secured credit). That signals to me, at least, it may not go fully their way, and that they might get outbid. Hopefully, it is a competitive bidding processes - with several majors wanting this high grade, long-life rock lithium mine and its tenements, and we get more than a token treatment in the worth of our shares.

That GXY pulled this stunt with what amounts to a relatively small amount of money (given the resource size and quality etc), I hope they get seriously outbid and outmanoevered, and that their repayment is essentially treated as a 'finders fee' by a major.

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Highly unlikely IMO. Today is the final day of negotiations of final proposal(s) for consideration by creditors. Why would GXY come out now and outline its plan for A40 assets, as if it were a sure thing, when the creditors vote occurs in ten days time? It would make no sense to outline a plan that could affect either the negotiation of proposals or the forthcoming vote. To do so may disadvantage GXY in negotiations, and conversely could be advantageous to other bidders (if there are any). The lack of detail surrounding A40 is simply a case of GXY keeping its cards close to its chest before the vote takes place. Behaving otherwise would be extremely imprudent and more befitting of MC and co.

That they have also gone to the trouble of spelling out in some detail the process of determining the full range of outcomes from the creditors meetings - highlighting that they may not end up with A40 in the end (apart from being paid back their secured credit). That signals to me, at least, it may not go fully their way, and that they might get outbid.

You may be right, but I suspect that you are reading into this a bit too much. All it signalled to me was that GXY wanted to convey that the company would get the debt back regardless of outcome. I don't think they're concerned at all about being outbid, it was just a statement to assuage any concerns regarding the return on this investment.