For a financier to appoint Receivers and then immediately throw an additional $10M at a $20M debt??? It's highly unusual and suggests to me that there were irreconcilable differences at play.... OR possibly something even more sinister.
Ordinarily there would be some relief and a little more patience shown by a traditional lender.
Charging some penalty interest and assisting the debtor for a period of time is a fairly standard commercial way to deal with these situations.... particularly where the value of the assets covered by the security appears to be well above the quantum of the debt and there is seemingly a strong likelihood that the debtor will be able to service the debt (or at least the interest component) in the near term??
I won't be surprised if Walkabout manages to source alternative finance in order to pay out Gemcorp and then enter into a Deed of Company Arrangement.
One thing is certain... there's a few accounting and legal firms who will be raking in some hefty fees.
There's more than meets the eye at play here IMO.
Just casual observations based on my experiences BUT with very little knowledge about the specifics behind the scenes.
EVG Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
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