The money had previously been lent to the project by GBG as a 50% shareholder. Ansteel has very kindly taken over the loan, in theory putting the money into the project, so the project can give it back to GBG. I regard it as a good thing for a couple of reasons.
First, if the holding company runs out of money, it folds, regardless of having a 50% interest in a ginormous cash flow negative project, and shareholders lose everything. So we should all be writing polite notes to Ansteel thanking them for their kindness, because that moment has been put off for a couple of years.
Second, (and this is a fuzzy one) it sort of acknowledges that GBG is out of its depth on this project, and it shifts the burden of carrying it through further to Ansteel, and paves the way even for a possible exit, if that is what the two shareholders decide is the best idea.
GBG Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
