Mgd108,
I am hopeful of a better outcome such as what you have suggested, but not exactly optimistic. I think that even if RCR did happen to re-emerge as a struggling; but potentially viable entity, and if they were actually able to resume trading again, the share price would be blowing in the wind with the other penny deadfuls. It would be pulverised on re-open. Not the end of the world for holders, as while there's life, there's hope. But no golden handshake. So the question needs to be asked, at this point if a buyer is found for the whole business, and that is done off market, does that mean shareholders get anything? I see no reason for a Downer (as reported previously as interested by AFR) to pay a market premium, more likely scrap value for the railway IP. So after creditors are serviced (how many cents in the dollar), then shareholders are still at the end of the line. As I said,hopeful, but not optimistic.
One thing that does also need to be questioned is the analysis of contracts going in in relation to delay clauses. There was a time when delays in construction caused by a builder would result in amendment claims by the (sub)contractor. Now, clients seem to have such massive payouts for delays that they make the banks look nice! Is there any real life assessment/comparison of what has to be paid from delays which may or may not be in the (sub)contractors hands? An engineering company that I worked for was nearly crippled by delay claims on a project near Gladstone that were unrealistic, disproportionate and unsustainable, but were in the contract. I firmly believe that it is not in the solar farms best interest to have their project managers go broke, but here we are. The same lawyers that wrote those contracts with such harsh delay penalties will potentially also benefit from class actions etc, but nobody on the ground benefits. Not the clients (billion dollar order book), not RCR management, not RCR shareholders, but particularly - and we must not forget them, not the actual workers - RCR staff. We lose money, they lose their jobs, and possibly much more.
The whole thing is ridiculous, even laughable. I saw a presentation from PLS (Pilbara Minerals) the other day. They have completed stage one of a successful lithium mine project, in quick time. This involved RCR, MLD, MIN, and others. Now they have given the approval for stage two. MLD, MIN, and others are involved, but sadly no RCR. Why not? The expertise is still there, the company knows what they are doing, but they are now out of the picture. I would be happy to hear otherwise from any RCR staff, but I think not. As others have said, RCR has had a good reputation for project delivery, and for engineering within mining nous. Not necessarily in risk management.
I have heard plenty of negative sentiment. I have not rung the company. Can anyone offer any positive developments on the ground? Not just other shareholders who have lost money, and are bitter. I am not trying to deny anyone a forum, but would like to hear if there is a positive light to shine?
Lairy
(20min delay)