Otherwise known as voluntary liquidation - the board may or may not go down that path. If they did, the assets of the company must be lquidated and distributed to shareholders. The issue will be that they could continue running the company at some capacity for now, but there is no guarantee that the assets of the company (i.e. cash) will still be around at that time as it can easily be eroded by administration costs, salaries and now it seems legal costs (i.e. Crescent accusations). Any shareholder is best to seek legal and/or financial advice if they are not sure of there rights in respect of their shareholdings.
Very sad indeed - but not the last time this will happens to a publicly listed company.
IDG Price at posting:
$4.40 Sentiment: Sell Disclosure: Not Held
