In the dark.., page-12

Opinions welcome...I think the pro's/cons need to be discussed.
At some stage we will be able to vote on it, at the EGM...whenever that is/will be.

Lets work with a simple number: 200,000 SWE shares.

200,000 shares at 3.7c (last sale price). Note this is not the purchase price paid, and I'd say most paid substantially more, so loses are going to be worse than this indicates.
= $7400.00
Diluted at 120:1 means this is reduced to 1667 shares in Newco valued at 2c per share
= $33.34

Try to offload/sell those shares - $19.95 brokerage
New total = $14.00
(Again, note....if the average purchase price was say 10 cents, then the loss is $19986 (not just the $7386.00 last price value )

Shareholders are last on the payment schedule...so regardless of whether the assets are sold or not, shareholders will not receive much from this either.

SWE owns shares in Swala Tanz...worth at a guess $15-$20m USD. They could not dump those assets for nothing more than paying their costs, as this in my view would be breaching their court appointed responsibilities. To sell ALL those for say $1m USD, would cause them all sorts of problems. (and the buyer)

And, If there was a buyer looming, you'd have thought they'd have sold already?

There is some loans which could be sold....But even HQA say Swala Tanz is look shaky (nice description)...so who would buy a car, from someone that says the car is buggered, and not as attractive as it looks? - So I'll discount any value there.

They could sell some of the shares...just $1m USD worth, at a fair price to cover costs....and distribute the others to us. But why not let us know the plan?

If we were offered a better dilution ratio, then I'd consider it. Its not like SWE had 1 billion shares on issue...something like 165m only. 10:1 is surely able to be worked into any deal?? Say 16.5m in the new company, and them raising new capital, shouldn't be to hard to manage, we might even be able to buy into it via SPP to support NEWCo??


If I am going to get shagged, I expect dinner and drinks first

So there is two different things here.
Getting diluted 120:1 (condition of the sale of the shell) for $500k...in the bigger picture is bugger all.

Receiving our fair share of the Swala Tanz shares which will/should happen anyway. The amount required to be sold at fair value, with or without the $500k from the buyer to complete creditor claims/pay administrator is of negligible difference. It will happen anyway...as $500k, does not cover costs of Administration and Creditors. So instead of selling 1m Swala Tans shares, they might have to sell 2m shares. As a percentage of return to shareholders....this is bugger all.

We might get 1 Swala Tanz share for every 3 SWE shares (1:3). Not a lot of difference than getting 1:3.002

But at least I don't have the feeling of having been violated.

What is the prescribed benefit of even doing this DOCA? I still don't know?
Why not go to liquidation? At least we'd probably be able to move on by now.
$500k, that's right.
But none of that will reach shareholders (might just cover the administrator costs)...yes it comes off the debt, but then sell a few more, just a few more Swala Tanz shares and get on with it, give us the rest on a ratio distribution. At least we'd have a chance that Swala Tanz gets their deal across the line.

That's right, we've been in Administration since end of June...and they say Swala Tanz is on their last legs?

But I see them still going.

I can see this dragging on another 6 months or more...with more money going to the administrator between now and then.

So 120:1...Nah...Its a NO from me.
Unless the deal is sweetened (less dilution), and intentions communicated (Swala Tanz Shares) that would make me change my mind.

But at the moment I stand to lose the final $14.00 (example if I had the example 200,000 shares)

Whats is other thoughts.