Can EWC recover from current market negative perception?, page-20

Mont was a big owner and a supporter of the company for many years.

His analysis is about right - but a lack of buyers is doing the damage as much as the shorters and for all the reasons he lists.

You are correct. A shorter will not cause bankruptcy - but a low share price can make minority holders vulnerable to value loss in other ways, particular when there is a very concentrated shareholder base.

The only debt to slipform/elliot is the only debt that is relevent. The other debt is structured project finance aaginst the PSC and PPA and will that will be fully repaid in 2022. The company will still be cashflow positive then. It will own a percentage of the Indonesian power and gas operations it currently owns and operates. It might own an operating LNG export facility at Wajo, and it might own a functioning LNG import facility and power plant in the Philipines. Remember that any restructuring will be by an independent team. if the cashflow from what remains of the Indonesian gas and power operation in EWC ownership is sufficient to service and repay the Slipform debt then the option of the other plants rolls on. If not, then the wajo and philippine plants might be sold on, or these might be retained and the PSC and PPA is sold on. Anyway my bet is that the Elliots will continue to do the right thing, and there will be suficient legal obstacles to stop them not acting in the best interests of the minority shareholders.

The current weakness in the share price is not helped by EWI/Slipfor/Elliot and arguably the lack of care and information from the company is a key contributing factor to the weakness. Breaches of care to shareholders (and the company) do not neccessarily have to be positive actions, directors can breach their duties by omission.

However the flags identified by Mont do not necessarily lead to bankruptcy, but do prevent buyers, enable shorters, and make shareholders vulnerable to having their investment taken for a song. Perhaps it is the fiancial position of slipform/ewi that is of most concern.