GBG’s auditors have told shareholders that the solvency of the company is in doubt.
Without the promise held out by Ansteel that it is trying to arrange continued funding, the company may likely already or soon be placed in the hands of administrators and receivers and managers.
It is not a choice for the directors to keep KML going, if they can’t secure the requisite funding, the law will eventually dictate that they place the company in the hands of the administrators.
If KML goes into administration, in all likelihood GBG will no longer exist (see quote from company at end of this post) as secured and then unsecured creditors will line up to take their shares. Shareholders in GBG will likely be left with a shell which could either be resurrected many, many years later after the insolvency specialists make a motza in fees or it could be liquidated all together.
Here are some words of advice based on my personal and sincere opinion for people still holding or who have bought in or are considering buying in.
If you truly believe this company has some hope in the future, wouldn’t it be wiser to sell now and buy back in later when the funding is secured. Sure you might miss out on a few cents if the price bounces back up a bit on the news, but you won’t be exposing yourselves to losing everything you have invested.
In my previous post I said that it would be my last . I have written this post as I have in the past been involved in fighting for the rights of unsecured creditors in a company collapse so have seen how these things play out and I would hate for long time shareholders to lose everything. In the end you will feel better with yourself if you get out with something. If you let the company take everything away from you the pain will be worse than just losing the money alone.
SilentO
This is not investment advice, only my sincere and humble opinion. People should seek professional legal and accounting advice if they are unsure about investments decisions.
“Under the indemnity provided by Gindalbie to Ansteel, where Ansteel has repaid the total loans outstanding, Ansteel has the right to recover any loss it may have suffered after sale of Gindalbie’s KML shares from Gindalbie."
GBG Price at posting:
6.7¢ Sentiment: Sell Disclosure: Not Held
