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$2.91 boart longyear group ltd

An interesting analysis of the assets, bonds and shareholder...

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ionshield

238 Posts.

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29/05/19

04:25

Post #: 38791683
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Originally posted by Bullspike: ↑

My original point wasn't to outlay the events of administration, but rather the simple fact that CB will be winners if that event occurs. Therefore they may be incentivised to let that event happen.

As you have stated, the assets will be sold, and tax costs and bank loans will be negligible compared to the proceeds from the asset sales. So Ares and CB are pretty much first in line as the major creditors. The proceeds from asset sales will far exceed the value of bonds issued by CB and Ares. Then after that, their large shareholding will be some icing on the cake for them. As you rightly say shareholders are paid last, which is often scraps, but owning 50% is not scraps.

And importantly you have to remember that CB did not pay much for that 50% stake. They will be massive winners.

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An interesting analysis of the assets, bonds and shareholder position. However a quick peruse of the Statement of Financial Position will show you that the assets - liabilities (loans etc) put the company $314858000 in the hole. So in a nutshell $0 for punters, no matter who owns how much.

BLY Price at posting: 0.4¢ Sentiment: None Disclosure: Held
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1 Great analysis

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