Ann: Appointment of Administrators, page-42

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gcdany

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29/08/19

10:53

Post #: 40214750
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Originally posted by robbo24: ↑

Bullant, VA is defensive move.

1) GXY was refusing to extend the standstill. This would mean the full loan is due at 7pm tonight, in which case A40 would be cash insolvent (not asset insolvency though). The consortium and A40 needed more time to make arrangements but GXY played its card.

2) GXY's only legal and financial interest is to have the debt paid in full. If this is done then GXY lose their power in that respect.

3) It is not smart by GXY. If A40 raise the funds then their equity gets diluted. A40 may end up with a new largest shareholder.

4) A40's events of default were technical and not related to solvency as such. Yes, A40 would be cash insolvent at 7pm tonight.

5) VA (With Kordamentha Restructuring appointed) stops GXY in its tracks. It cannot enforce its security. Korda will ensure A40 retain its assets if it is possible (which simply means raising the cash).

A40 has bought time by going into VA, also the benefit of appointing it's own administrator (rather than GXY appointing a receiver).

Who knows maybe Tribeca will buy up equity lol.

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It is still bit of a murky waters for now. It still can go either way. But quite frankly, the cash position of A40 is in favor of GXY. If they manage to appoint the receivers, then yes GXY wins it all.

A40 Price at posting: 8.2¢ Sentiment: Sell Disclosure: Not Held
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