MOY - Class Action, page-5

You are absolutely correct, this is a viable gold mine that has run out of cash flow. It required more money to be pored into the company in order to keep it afloat and to put more money into the process of removing gold from the sulphide ore.
Then once the process was refined it would be able to pay back the dept, IE it would be a profitable gold mining company. MOY would also be able to expand by starting other projects that it was ready to begin on, once the UG sulphide mine was producing good cash flow.
MOY is a company that just ran out of cash during the start up phase of a new gold mine. They required more money to get to the point of viability. Saying that, this is a viable gold mining company that borrowed money in a fashion, that required repayment in large volumes before the company was going to be ready to be able to repay them.
MOY took on dept as though they were starting up an oxide gold mine, in which case the money would have been available to repay the dept in large volumes. BUT with a sulphide gold mine it takes longer to refine the process ( this also takes more money to get it right ) in order to produce the extraction rate required.
This company did not get the books right, they required a much better financial man in place in the company who knew the procedure for starting up sulphide gold mines.
The lenders of the money then took advantage of the situation and closed the company down buy calling in on the dept instead of lending the company more money until it was able to refine its processing.
I don't own any stock in MOY as I sold out a couple of weeks before it collapsed, but I was involved with the company for a long time waiting for the moment when they announced that extraction rates were good and we could start up the next UG gold mine. I lost a fair bit of money buy investing in the company that should have got it right.
I don't know if it makes any difference to the judge as to whether the company was going to be successful or not and just needed more money and for the repayments to hold off for a while. But there is no harm in letting him know that the mum and dad investors are loosing there money just because the company couldn't get there finances right when starting up a new UG gold mine.
All the best in your endeavours from a fellow sad investor in a good project.