From Platinum Receiver pages 27-28 court document #302 Cleveland...

From Platinum Receiver pages 27-28 court document #302

Cleveland Mining – refers to Cleveland Mining Company Limited (“Cleveland Mining”), a publicly listed company located in Australia, and its subsidiary Cleveland Iron Holdings Pty Ltd (“Iron Holdings”). PPCO and Platinum Long Term Growth VII LLC are owed approximately $15.6 million, which is secured by a first priority security interest in all of Iron Holdings and Cleveland Mining’s assets. PPCO also holds approximately 29.3 million shares of Cleveland Mining and approximately 50% of the equity of Iron Holdings. Cleveland Mining has a 50% joint venture interest in a gold mine located in Brazil, which is currently not operating. At this time, the Receiver understands that Cleveland Mining’s subsidiary, Iron Holdings, has no assets of any value. Since the Receiver’s appointment, the Receivership Team has spent significant time analyzing the legal, financial and business issues relating to this investment. In addition, the management of Cleveland Mining has been litigious and has issued several demands addressed to the Receiver, including a challenge to PPCO’s filed security interests in Australia, which have required responses. The Receiver retained local counsel in Perth, Australia to assist in Case 1:16-cv-06848-BMC Document 302 Filed 01/22/18 Page 27 of 36 PageID #: 6057 28 5054655.1 addressing the issues raised by Cleveland Mining, as well as a local financial advisor to assist in providing an independent review of Cleveland Mining’s financial position. Cleveland Mining’s financial position (i.e., its solvency) and/or management’s ability to raise capital, will ultimately determine what value, if any, Platinum will realize on this asset