While not disagreeing with the general sentiment I don't think we know (apart from Sequoia and Madison) what security OVH has over the remaining assets. It seems OVH has first bite at the Diversa cherry but that may be muddied by the Chinese having some sort of general security over a range of assets. At the end of the day there will be a lot of wrangling behind closed doors as to who gets what and I suspect OVH will still get a significant portion of the remaining debt otherwise management will pursue further legal options as noted in their last report. To see that already there appears to be some sort of agreement in place with a US purchaser would suggest a reasonably acceptable outcome will result. Bell Potter put a price target of 58 cents presuming 50% of the debt would be recovered. Currently about $4 mill from SEQ, say about $6 mill from Madison (see my previous post under Madison Sale) leaves only another $5.5 million from the remaining assets to put it ahead of BP's estimates. I think there is more than $5.5 million left in Diversa not to mentioned other assets which may be included.
OVH Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
