The administrators might well trade on and make a decent profit without a mountain of debt (and the associated costs) to worry about. They will need to keep Quintana on side and paid in some way, otherwise they can exercise their security.
Assuming they do a deal with Quintana and trade on, if they can prove it's a profitable mine when you have no debt then they might get a decent sale price but that in itself would be lucky to pay off Quintana, any other secured creditors and the administrators.
Then you've got the millions owed to unsecured creditors to deal with. No doubt many of them would be providing essential services to keep the mine running so administrators may need to cut deals with them too as it may well be cheaper to do that than to get in replacements.
ALL unsecured creditors get paid before shareholders and that's simply not going to happen and the quicker the blind fools on here realise that and shut up about some kind of rescue the better!
The only possibility that I can see where shareholders end up with ANYTHING is a DOCA. Even then, we'd be diluted into non-existence because anyone putting money into the current mob will want an appropriate level of reward to cover the enormous risk.
Therefore, if we ended up with anything at all it would be so small it would probably be insulting.
Administrators don't get appointed overnight, this would most likely have been happening in the background for a while. I wonder if they have also been sounding out possible backers to propose a DOCA? For the record, I wonder not from a hope of receiving any return on this failed investment but more from an interest in the ways of the corporate world. All will be revealed at the second creditors meeting!
To summarise - all shareholders you have just lost everything so can people with no idea about the corporate world and insolvency please stop posting crap?
BTW you are wasting your time contacting the administrators and are only increasing the amount of money they will earn on this lucrative job (which they charge out at horrendous hourly rates!) IMO you are also wasting your time contacting ASIC - I can't see anything the company has done wrong except be incredibly incompetent at running a gold mine. The same with Hot Copper and all those other newsletters and articles - they were all effectively paid advertising. They all have disclaimers to cover their arse so get over it and learn something.
KBL Price at posting:
0.2¢ Sentiment: None Disclosure: Held
