AED 0.00% 14.5¢ aed oil limited

far too much misinformation

  1. 1,079 Posts.
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    I have been visitng the AED thread on HC for a very long time but today ranks right up there with the best as far as misinformation is concerned.
    The biggest issue the doomsday merchants are touting today appears to be the following:
    Creditor owed money - evidently $40M or so and may - gasp! shock horror! - appoint a manger/receiver and wind up the company.
    All the poor shareholders will get nothing if this occurs. But hey - guess what? The creditor gets nothing as well!!!!!!!!
    Other than the oil in the ground the only asset worth mentioning is the infrastructure.
    Let me put it in a way that even a 5 year old could understand (I know from bitter experience last year this is the only way everybody gets the message)
    Suppose AED goes broke. They put all their oil well infrastructure that cost over $100M on EBAY. How many bids do you think they would receive???
    Understand??? If they go bust nobody gets anything! Shareholders, the creditors (the people the company owe money) end up getting a big fat nothing!
    So - and I'm sure you can see this coming - why the hell would a creditor try to wind the company up when they know the outcome? They get nothing! What are they? Stupid?
    Second point.
    AED owes CBA and WBC over $100M. You guessed it. If AED goes belly up they also get nothing. Not one dollar.
    Banks have just 2 options. Do nothing and let AED POSSIBLY (highly unlikely) go broke from hostile creditors. Or they lend just enough to stave off creditors and let AED trade their way out of a hole (or two - couldn't resist) by teaming up with a new player next month AND SAVE THEIR $100M.
    Easy decision in my mind.
    Regardless of all the half-wits and their doomsday "end of the world" posts AED will never go broke so long as CBA and WBC are willing to provide financial support (to save their own backsides!)
 
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