Reading through those ASIC notes about administrators being appointed....
The receiver/administrator/liquidator acts ONLY in the interests of creditors, they are under no legal obligation to obtain funds in excess of the debts owed to creditors which might be returned to shareholders.
They also have no further duty to report to shareholders on how they plan to deal with the company assets, so don't expect much in the way of updates about what offers might be made (if any).
What this means is that even if IFCA do manage to get sufficient funds, they can purchase 100% of CMQ for their own benefit for $60mil less whatever cash is left in the company after administrators fees, so lets say around $4mil cash left after paying redundancies, interest and fees, IFCA would be able to buy the lot for just $56mil. Bondholders get 100% of their money back, IFCA get 100% of the assets, shareholders get zip.
If there are no other bidders for the assets, IFCA may not even have to offer that much... bondholders would then cop a loss as well, and there will still be nothing for the shareholders. However IFCA have indicated they would only be interested if everything was kept intact. With all staff having now been laid off it looks like the break up process has already begun, and IFCA are now probably out of the picture.
Anyone making a bid for CMQ now will have to be extremely patient to get a return, with regulatory approvals in the biggest markets still years away, and the current plant can't even start to generate income again for many months (assuming that anyone actually wants to buy the stuff, which at the old price has proven not to be. With the price reduced to a level where it will sell, it may or may not be profitable).
In short, shareholders should not expect to hear anything more until the administrator reports in 6 months time with the news that funds raised were either insufficient or only just sufficient to satisfy the debts, and there will be no return to shareholders. At least then shareholders will be able to claim their capital loss.
CMQ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
