Australia's largest stock trading and investment forum Australia's #1 stock forum

A40

Click for more information

0.00%

8.2¢ alita resources limited

Unfortunately Administrators are another cost to the company,...

First 60 Last

Share
Profile

Follow
Dancing

4,730 Posts.

473

29/08/19

11:37

Post #: 40216298
Share

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.

Expand

Unfortunately Administrators are another cost to the company, and being in Administration disrupts employee morale and operations.

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

Top Stories

3 stocks with antimony news on Thursday

GTR

GTI extends uranium mineralisation at Lo Hema through development drilling

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

CHN

Chalice jumps on Putin nickel export ban threat – but then there's bad news

CU6

Clarity progresses SECuRE trial with positive safety results

There are more pages in this discussion • 129 more messages in this thread...

First 60 Last

Add A40 (ASX) to my watchlist