I would be very surprised if KBL applied most of a CR to pay down creditors, I think it's more likely that they will use the funds to make repairs, make supplementary payments to creditors that would have come from cashflow during the down time period and use the balance to explore beyond the Pearse open pit.
It is still a fact that beyond the Pearse open out there is a small identified resource that has grades of about 1/3 of the open pit grades. If KBL don't find more ore there is no business going forward as the company will only exist to pay creditors at best.
If I am an underwriter, I would be loathe to put more money in right now, I mean take an objective look at it, KBL in its current form is virtually walking dead and needs to be unshackled from the legacy debts if the operations are to have a chance.
I sincerely hope I am wrong but when I put my realistic glasses on, I see administration is more likely than white knights and therefore I am out!
KBL Price at posting:
0.6¢ Sentiment: Sell Disclosure: Not Held
