I used to work for a big 4 insolvency firm. You go into VA so you don't get done for breach of s588g of Corp Act. It usually costs a load of coin once an administrator runs the show, same for receivers. Calderwood is covering his own arse.
The law essentially is in favour of the receivers 100%. They call the shots, make the decisions, run the business and they also get paid all of their fees ahead of unsecured creditors. And the fees are massive. KPMG is top tier smuggery, look at their charge out rates. When the job is payable i.e. the company has assets exceeding secured amounts, the goal is to stretch out the process to claim as much WIP as possible. Even a creditor's phone call is charged, the juniors who take the call are charged out at over $150 per hour.
All debts incurred prior to the appointment are frozen. If the receiver wants to trade on, they can, but they take on all the risk, so I don't see them restarting the mine anytime soon. MC will report to them during the receivership. Shareholders never really considered, even unsecured creditors are treated with contempt. Ultimately the R&M do what best suits them. If you think the ASX is a rort, you'll fall in love with insolvency law.
Will be months before this is resolved. KPMG's cut will be in the millions, any proposal will be cents on the dollar, surely. Some very good points made on this thread regarding the receivership - worth reading.
GLTA holders.
A40 Price at posting:
8.2¢ Sentiment: None Disclosure: Not Held
