Peterbax you are right shareholders only at the bottom of the barrel if Company moves to liquidation which I still believe is not the most likely scenario. The posiblity that some shareholders may have elevated rights was based on what Mark70920 posted earlier on this thread.
As one of those who were still buying shares as late as January 15th 2008, if TG is found to have been guilty of making deceptive statements then I may by legal precedent have some rights to compensation. It all presupposes that TG had knowledge that ore planned to be mined for March Quarter in particular was seriously missing the mark in terms of grades to produce the budgeted 30,000 oz. TG of course was talking up Views excellent December ramp-up production and the likelihood of of a rosey March Quarter. He was evoking confidence that ramp-up to nameplate capacity and gold production had been achieved well into January. Later in January we were made aware that January budget would not be met but the production in total for the whole Quarter would make budget. The crux of the matter is was he aware or should have been aware before he made these announcement that grades being mined were going to be unsatisfactory and therefore his statements were misleading.
If TG is formally charged and found guilty then I would think shareholders who bought shares AFTER TG had unequivical knowledge that things were going belly up may have an elevated right to recover their funds from the Company.
In reality I think this scenario is unlikely because of the nature and known risks and tightrope associated with miners at the critical ramp up stage. However, who knows what was happening behind the scenes. And we know what a toothless tiger the ASX and ASIC seem to be.
As for the poor old Option holders - sorry - I believe you would have no rights at all because all you have is an option to buy shares - you can choose to buy or not to buy at any stage prior to expiry. Because you don't actually have any equity in the Company you realy have made no loss due to the Company failure only a loss that you choose to make if you don't take up the Option to buy shares at the set price by the expiry date.
I have registered an interest with Ferrier Hodgson because of the fact that I did make purchases late in the piece and who knows????
I also believe employees are paid their entitlements before other creditors. These days I think most states have passed legislation that secures employees entitlements.
Once again having discussed the above I still believe IMC will save the day for all shareholders.
VRE Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
