Question:When does a company sign a $36mill contract for the...

Question:

When does a company sign a $36mill contract for the acquisition of a world class asset, book a settlement date, then suddenly renege on the payment terms, and seek to re negotiate?

Answer:

Cold feet. One, if not both of the parties wants out.

I doubt this would be because funds were not available. I believe Charge would have been made aware of this contract condition prior to MOU signing.

So what now for ADY?

ADY meets with it's creditors later this week and pays down some of the Hawkswood & YA Global loans, with recent monies obtained from IO sales.

An equity raising occurs directly after the AGM, or an EGM is held to achieve same, as other posters have also suggested.

If this doesn't happen ADY would need to promptly appoint an administrator in the interests of shareholders, so that part of the business can be sold off (such as 50% RLL) and the company can remain in business, so effectively Phil Thomas can walk away without having totally destroying ADY.

Other Juniors have been able to secure finance deals with the Chinese in the present market. MGX for example. Thomas can apportion some blame to the credit crisis, but at the end of the day he gets paid to foresee market conditions, not be exposed by them. And deliver on promises to secure company project finance, not make excuses.