Yep, most solvent businesses are valued this way, but not businesses that are subject to receivership. This is because the business in receivership has little to no bargaining power, that is, they basically have to take what is offered to them. Value means little at this point, what matters is what others are willing to offer to purchase the mine. Anything is better than nothing for the creditors. Of course, the creditors/receivers will want to extract maximum value in an attempt to cover the monies owed to them, however they too understand they are on the back foot here. That is why assets sold under liquidiation processes always sell for a fraction of what they are valued at should the business be solvent. I think by memory for example AJM's Bald Hill mine sold for just $70m. AJM spent hundreds and hundreds of millions on the mine.
With respect to KPMG, they were the administrators appointed by the Board however they have subsequently been superseeded by Korda Mentha who are the receivers. The receivers are in control and I do not think they are under any obligation to keep shareholders informed - their duties are to the Creditors only. Clean Energy Finance Corporation probably need not exlain anything either, as a creditor.
Yes there are many questions, many of which, in my opinion will never get answered (based on what I've seen of previous receiverships). Really a crappy spot for shareholders unfortunately. Of course though, if shareholders beleive the board/management have breached the Corporations Act then ASIC should be contacted, and legal action can also be persued.
SO4 Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
