What is most striking about this announcement is that it is disguised to look anything but an admission of defeat, when in fact that is exactly what it is - the board, supposedly full of experience, realise that they just can't do it. They've given up.
What happens when a company is liquidated? All assets are sold off to try to cover liabilities and perhaps pay a return to significant stakeholders if they're lucky. This new initiative by the company sounds awfully like this 'fire sale' approach, doesn't it!
Expect long winded delays to reach an agreement and an even longer delay to finalise them. Even after all of that, can shareholders really expect some of the funds from the sales to reach their own bank balances? $8M will go to Mashala, they've millions mounting up in debt, and no doubt there will be 'fees' to look after. What will be left if they sell it all off? If there is any cash leftover there's no doubt in my mind that it will remain conveniently locked up on South African shores. Hypothetically with no assets next year, and no cash to spare, will CCC be anything but a micro cap shell? It sounds extravagant and dire, sure, but after failure after failure who can really trust these guys to do something right for once. This will be a long winded journey at best.
CCC Price at posting:
4.4¢ Sentiment: None Disclosure: Not Held
