Personally, the best option if it is available and only if the company is profitable at current exchange & NP would be to trade it out with a short term liquidity injection.
I work in the insurance industry, specifically in liability insurance and I am yet to see anything conclusive that would lead to a successful SH class action. That is in my opinion only though. I would also be interested to see what terms and conditions were put on the Directors and Officers liability insurance specifically around insolvency. The reason I say that is they have gone through a debt restructure and usually insurance companies put insolvency clauses on policies where solvency is/was an issue. I think you will also find that is the reason they went into VA so quickly. It could also mean that they called them in early and it may not be as bad as it could be where these terms don't normally apply. We wont know that until the administrators have had adequate time to go through everything. It was most likely an insurance requirement for indemnity under the Directors and Officers that directors call in administrators as soon as they believe solvency could be an issue. Solvency was flagged as a potential problem in the quarterly also with reference to a possible capital raising.
The 100M comment in the CC was on the back of an investor presentation from memory. The company also mapped out in one of their presentations their base case which included NP projections. They quoted these from another source. The CFO also didn't just say 100M from memory, he said something along the lines that if the projections played out..... which they have not.
Hopefully you all get some good news soon.
MBN Price at posting:
8.3¢ Sentiment: None Disclosure: Not Held
