I hope for shareholders and other contractors that you are...

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24/10/19

12:44

Post #: 41048955
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Originally posted by flaneur14: ↑

Perhaps I am overlyoptimistic but all is not lost, I think.
The appointment of the provisionalliquidator is necessary to preserve effectively and expeditiously thestatus quo,to prevent the dissipation of assets prior to the finalhearing of the winding up application and to ensure, in the publicinterest, that an independent official liquidator investigates andidentifies the companies’ records, transactions, assets andliabilities.
Now, this is asignificant intrusion into the affairs of the company because it hasthe effect of displacing the directors and the provisional liquidatorassumes control of the company but he provisional liquidator also hasthe power to carry on the company’s business.
So in that functionhe can receive suggestions from others how to deal with thesituation, how to manage the business of MED, assess proposed newdirectors…..

Now, a certain MrWaterson has made affidavits and also deposed that he is informed byeach of the directors of Merlin that they are prepared to stand downas directors of Merlin upon the shareholders identifying qualifiedpersons to be appointed as directors in their place and to facilitatesuch persons being appointed in their place.
At this point intime there is no evidence that any shareholder or group ofshareholders has identified and suggested suitably qualified personsto take the place of the messrs Gutnick, Gutnick and Tyrwhitt.Surely, there mustbe a few experienced (retired?) directors around who are capable ofdoing better that forementioned chappies.
The judgement asmentioned on the above noted website says also:“it is a matter ofspeculation as to what steps, if any, shareholders or noteholders maytake following the appointment of a provisional liquidator. Thereis always the prospect of discussions and negotiations between theshareholders, noteholders and ASIC as to the future governance ofMerlin.”

From that Iunderstand that it is still possible to save MED from liquidation,provided that some suitable and willing directors can be found.
Anybody have any suggestion/proposal?

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I hope for shareholders and other contractors that you are right.
I would question what assets they actually have, some very basic plant and equipment, an unknown quantity of diamonds and a mine that has not operated above test levels for around 17 years.
Will be interesting to see if the directors have any conditions attached with their offer to stand down?

MED Price at posting: 0.6¢ Sentiment: None Disclosure: Not Held
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