Why were the investors lied to if their intentions were to...

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28/02/15

11:59

Post #: 14836324
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Originally posted by Burratipi ↑

Hi BM...you raise an interesting question..the banks are probably not worse off, there is a surplus of assets over liabilities as at June 30. It is Cupric that would be worse off.
DML/CP was possibly about to stop Cupric picking up the plant cheaply. Barclays fund Cupric, Standard Chartered DML - both UK based. Hypothetically, some discussions may have occurred amongst the resource managers. Cupric want that plant on the cheap.

One of the covenants requires DML to have $3m in the bank at the end of the month. Yesterday was the last (working) day. If it wasn't there the directors had no option. There is a positive in that the directors moved quickly to VA. Voluntary Administration is not liquidation, at least not immediately. Its akin to chapter 13 in the US, protection from creditors and time out to assess the situation. The initiative has gone DML's way.
And the directors cannot trade while insolvent, they were entitled to protect their positions in that regard. The banks would have appointed a liquidator. The banks lost that initiative.
It will be interesting to see if the banks apply to the courts for an immediate wind up.
Its how I see it, I don't pretend its education though.
Rgds

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Why were the investors lied to if their intentions were to protect the company?
It looks to me like you do things to bury DML and then get into VA for its own safety......sorry mate doesn't add up.....does it?
If anyone can save this Situation it can only be Barclays, you will remember this note if DML did come back up.

DML Price at posting: 1.9¢ Sentiment: None Disclosure: Held
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Why were the investors lied to if their intentions were to...

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