trading halt at 7pm!, page-44

This potential new challenge is about the initial allocation of rights to Genorah.

I believe Anglo have absolutely nothing to lose by challenging the initial allocation of rights, and in the short term, neither do NKWE, because of the following:

Genorah is the entity which has to fight these claims.

If they don't have the funds to fight the fight, guess what will happen? Genorah will have to sell any assets it holds to fight the battle. The problem is (although I don't know this for sure) Genorah's only real asset is probaly the 60.4% stake it has in NKWE. So by forcing bankruptcy on Genorah, suddenly 60.4% of NKWE comes up for sale - possibly to the highest bidder. So regardless of whether Anglo wins back the rights or even if it loses, they will still end up with a large chunk.

If Genorah win, they will still most likely lose some or all of their stake in NKWE, although they might end up with some cash for legal costs. In this case, Anglo wins again because they could end up with as much as 60.4% of NKWE.

To me, that is a much cheaper way of getting a major stake in these 5 farms.

I believe the probability of Anglo reclaiming the rights to these farms virtually ZERO, and I would guess Anglo probably don't think they have a chance either. But one thing is certain, up to 60.4% of these farms will be shaken loose.

This then poses the question: If Genorah have to sell their stake in NKWE, what price will someone be willing to pay?

We may finally see what the real value of NKWE is then. I believe this will surprise big time.

Alot of people on this forum are worried about the cost to NKWE WRT legal costs. NKWE are not fighting any fight at the moment and will only have to start funding legal costs IF Genorah loses the original rights. And as I have stated before, they will then have significant claims over genorah and, more importently, the DMR.