where’s the $15m??

I was starting to wonder where the $15M from the Balkans sale had gotten to, so I called Mike for an update. As usual he was happy to talk and he explained that the deal is a more complicated process that would normally be the case for a typical asset sale because there are two banks passing cash through a series of structures in the middle (the consortium) and then on to Balamara as the Seller. This process also requires an accredited escrow agent to manage the flow of funds and this agent needs to be vetted and passed by banks on all sides due to strict rules concerning banks transferring cash. This process has taken longer to facilitate than expected due to certain banks deciding what escrow agent they want to work with, or not, and as a result the delay we are experiencing.

I didn’t actually know what “an accredited escrow agent” was, so I looked it up here;
http://www.wisegeek.com/what-does-an-escrow-agent-do.htm

The longish time that it is taking to get the money in has nothing to do with BMB, it’s just the longwinded process that has to play out when a transaction of this type is being undertaken. All parties are keen to see the see the deal completed as soon as possible, it now just requires patience and a cool head. The process is evidently going smoothly (albeit slowly), and the Company expects the deal to be completed in the next “few weeks”. We’ll get an announcement once money has come in.

Mike also confirmed that the ASX announcement regarding the sale of the Balkans assets had to be made when it was due the ASX’s continuous disclosure rules.

Mike was happy for me to post about our conversation after I explained that a few on HC were getting a little impatient.....