I have talked to administrators and it is quite usual if there is little of realisable value in the company to accept a substantial discount on your debt. 30-50% would be quite normal. Better to get something rather than nothing. There is little of realisable value because the break up value of Skardon River would not be worth the time and effort dismantling the plant, transporting it and selling it. Anyway let's hope that this is all doable and MSC lives to fight another day. I, for one think there is still a chance of value in MSC. Alternatively, the creditors may be offered their debt in full by the new investors, who knows.
MSC Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
