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01/11/23
19:14
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Originally posted by Shortblack:
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Here's my theory on what has been set up here .... The company is delaying appointing an administrator until they finalise the deal they've been cooking."PET is currently negotiating with a third party regarding a potential divestment of PET’s key assets in exchange for cash." Here's the deal (my theory) .... Someone, or a group, want to take over ownership of the Chinese Subsidiary company BEST. This is what their offer may look like - 1. The buyers take over the lease liabilities in China; 2. The buyers take over the trade payable liabilities of Phoslock; 3. The buyers take over the unfulfilled client contracts; 4. The buyers have to complete the manufacturing setup in order to produce profitable levels of inventory; 5. The buyers take over the responsibility for all and any liabilities Phoslock has in China in relation to regulatory breaches (one legal headache gone); 6. The buyers take over the contract with Phosflow - I would imagine the owner would be making threats of legal action against Phoslock (another legal headache gone); 7. The buyers make a payment to Phoslock of a nominal value for inventory and equipment taken over; 8. The buyers keep the rest of the cash. Who's the buyer ???
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With your outline as above there would also be no need the repatriate the recent settlement funds from BEST to Australia ?! Another potential problem solved ?!