The creditor's are in the same position as the shareholders. The only thing that can be sold is the tenements and the plant. Investec gets the first $15 million of any sales. IMC comes next at $27 million. Then the creditors who are probably owned $30 million. The administrator will point the facts out to the creditors and ask them to accept delayed payment on back debt and cash payments going forward. I don't have a clue on how the Administer solves the problem of the hauling companies which MOY says they intend to eliminate. Hopefully the hauling companies have large payments due them which they won't get if the company goes into receivership. That might provide enough incentive to get them back into the fold if management promises to keep using them. Looks like a long tough rode to stay in business. Hope October numbers were good. That would help.
MOY Price at posting:
5.1¢ Sentiment: Hold Disclosure: Not Held
