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BND

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8.4¢ bandanna energy limited

Ann: Appointment of receivers and managers, page-6

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19crowe45

1,458 Posts.

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29/10/14

11:55

Post #: 14199821
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Originally posted by damascus ↑

Yes they have exercised their right to appoint there own administrator to manage the assets they have a lien over but the assets on their own in this market will be worth nothing. Who will buy Springsure project which comes with a huge WICET liability attached....no one. So CS needs WICET to restructure agreement and BND will need a capital injection to move the project forward ( continue land holder compensation and mining lease approval) as a going concern for CS to have a chance of recovering their $50m.
depending on what hypothetical cash injection and what leverage BND can use with their cash, it is possible that equity holders might end up with a considerably diluted stake but hey , I'll take 20% of something rather than 100% of nothing.of course if coal stays at $65 o tonne between now and second creditors meeting in 12mnths then it really will be game over, but until a number of avenues are exhausted there is still a chance of a better outcome than what we currently have.

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Man, I am not really one for faith, hope and charity but it is nice for a change to hear an opinion of guarded optimism. I guess it is just possible that the 12 month time frame delay could work in favor of investors. I sincerely hope so for myself and all concerned. Cheers!

BND Price at posting: 8.4¢ Sentiment: None Disclosure: Held
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