AYN (ASX) Ann: Appointment of Receivers and Managers

Originally posted by samuel ↑

Jantimont, thanks for your input. Looking at the paragraph below, The creditor is owed money
wouldn't it be in the best interest for the creditor to get all the money that is owed them, so why can't
the Receivers & Managers put a option to the share holders to fund money to pay the creditor.
And to fund money to put AYN in Care & Maintenance until the silver price goes up.

Can I ask share holders of AYN, if this was presented would you support this?

"Current Status of the Companies
The Receivers and Managers were appointed by the secured creditor of the Companies pursuant to its security interest and have assumed control of the Companies’ assets, including the Texas Silver Mine. Accordingly, the Receivers and Managers are responsible for, and will determine issues relating to, the Company’s ongoing trading and the manner in which the Company’s assets are dealt with. We will assist the Receivers and Manager in this regard where appropriate in an effort to maximise the outcome for all stakeholders of the Companies."

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samuel, it's not clear who the creditor is, or how much they are owed. The last AR showed minimal borrowings (for a house) but the Dec qtrly showed borrowings of $2.375 taken during the year. Who from, and for why, is not clear. The activities report mentions borrowing $3m to fund the Black Mountain acquisition - but the cash flow report says the company hasn't drawn down any loan facility (top of page 3 of the 5B).

The whole thing looks a complete mess - IMO you'll never get anything out of this, you'll need millions to buy off the creditor (and CCU managed to raise promises of $400k from existing holders, from memory?) and then you'll need funds to keep it on C&M. When did it last run? How much has it deteriorated already? How much working capital will be needed when the POS revives, and how long is the open-ended commitment to C&M? Plus, someone, somewhere will need to provide for $3.5m of mine rehabilitation provisions, as per the AR.

All the mucking around with Red Arrow, Black Mountain, Platinum, complicates what was a simple silver mine. I'd suggest your best bet is to see who buys the assets, and then when silver takes off, buy shares in that company.

For anyone who feels that management has misled them and can afford to do something about it, then IMO your first call should be solicitors. But in my experience that is usually a costly exercise with no success.