Banter and General Comments, page-16936

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XForceOne

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20/10/20

20:43

Post #: 48248203
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Originally posted by clivemax: ↑

Yes, that’s correct, Galaxy put some money towards A40, $40,000,000 million from memory.

The wheels fell off A40 however, there may be still some sabre rattling between Galaxy and the creditors.

Not sure of the details as these legal activities, (if this is happening) can drag out.

But if this is so, it is not a clear example of what I was referring to, as Galaxy is also a producer and feeding to other development mines.

Galaxy appeared to more interested in a partnership than a takeover, elsewise it may have been argued, why then didn’t Galaxy take over A40 when A40 was on a financial slide, as oppose to the administrators?

What I originally referring to is:
A company is found by the client that producer’s suitable material
The company is then offered an increase to produce more material for the client to buy.
The company chooses to expand to meet the demand of this material for the client
The company borrows money from the client, in order to fund the anticipated demand to the client.
Once the debt is finalised, the client then cuts off the demand.
The producer then cannot pay the loan.
The client uses the debt to purchase the company.
The client then becomes the producer.
The objective of the client to control their own supply.
It all may not be as black and white as the above however, in some cases this may be the overall strategy.

Also, due to this virus, Scomo, (Scott Morrison, Australia’s current Prime Minister) has apparently put the brakes on take overs of companies suffering duress, due to debt.

Boom, Boom!

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Chinese are experts in this scam. Because it is a scam after all. There's only one problem: there is normally a binding contract, you can't just cut off supply.
Last edited by XForceOne: 20/10/20

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