Following the announcement on 11 December, the Board has resolved to appoint Mr. Yan Liu, the Company's current Chief Executive Officer and, Mr. Zhiwei Gu to the Board with immediate effect.
The Company's Board of Directors is now comprised of Mr. David Yu Chen, Mr. Yan Liu, Ms. Juan (Kiki) Wang, and Mr. Zhiwei Gu.
In line with the Company's commitment to reduce its G&A costs, all new appointees to the Board have agreed to a lower level of remuneration compared to previous Directors.If I was being done over. One would be getting a very large pay RISE not a pay cut to help keep cost down.
you are now talking about liquidation, not administration.
To repeat for clarity for others
Carvey your words
“They have the right to call in the loan which means they can serve demand and then call in the receiver.
The receiver will then takeover the company and its bank accounts and allocate the assets to the creditors. I presume, in this scenario, Lind would have some sort of seniority over LO since they are professional loan sharks. RRL owe them around $7m and I expect there are a few mil kicking around in the account.
However, the Chinese are very shifty though as they sold the only tangible asset off to themselves first! First class feckers..... LMAO. What could the receivers get for a bunch of licences and PL's old laptop? Hard to flog in current oil price. It will take time.
Lind must be fuming with the sale of RRDS. I suspect this won't end well unless the Chinese pay them but the question is, why isn't the Chinese paying them? What a bloody big mess and mystery. What are the Chinese playing at?”
Companies can be both in receivership and either administration or liquidation at the same time. If that occurs, receivers generally run the company because they have control over the secured assets, which are normally all the assets of the company. Where receivers alone are involved, they have power over the assets in respect of which they have been appointed. The directors remain liable to perform their statutory liabilities, such as the filing of annual returns and will retain power over any assets which are not the subject of the receiver's appointment.
Question which assets have a security over them, Answer Texas
Question would RRL be pleased to offset the LIND loan against Texas as a result of a receiver being appointed, Answer yes.
You are posting an inaccurate description of the consequence of recievership in relation to LIND
From the insolvency guide, whether shareholders need to approve the winding up of a company:
"Liquidation There are two types of liquidation for an insolvent company: creditors’ voluntary and court. The most common type is a creditors’ voluntary liquidation, which usually begins in one of two ways: 1. when creditors vote for liquidation following a voluntary administration or a terminated deed of company arrangement, or 2. when an insolvent company’s shareholders resolve to liquidate the company and appoint a liquidator. Within 11 days of being appointed by shareholders, the liquidator must call a meeting of creditors who may confirm the liquidator’s appointment or appoint another liquidator of the creditors’ choice."
I am very well aware many banks accept equity. Lind may well accept it but I highly doubt it because their modus operandi is to get shares on a discount and then offload it for an immediate profit. Banks only accept equity when it is a going concern and mostly when shareholders get wiped out.
Look up Hibu history. Interestingly, I posted there too and drew the same criticism from the BB as here. I am not saying this will go bust. I am only saying Lind has the powers to call in receivers which you have now agreed with me. I am puzzled by why if the Chinese want the assets so badly that they still haven't settled Lind?
Like I said, we will find out within a month. Lenders like Lind will not accept having to wait for the future or take shares it can't sell.
To call the loan in simply means demanding repayment within the terms of the loan. Right now, this is in default clause which means the whole lot can be called in. You have not been reading the RNS properly have you? Once again RNS said:
"the Company has made an undertaking to Lind that, to the best of its ability and subject to AIM and ASX listing rules, the Company’s Shares will not be suspended from trading on either the ASX or AIM market for more than 5 days, commencing from the execution date of the loan facility agreement. With the recent suspension, the Company has fully utilized these allowed days and subsequently provides Lind with certain additional rights under the agreement, including the ability to demand re-payment of the loan."
And also from the AGM document you were referring to:
"Under the Funding Agreement, if Shareholders do not approve the prior issue of Collateral Shares and Lind Options in accordance with this Resolution 22, an event of default will occur under the Funding Agreement and Lind has the right to declare that all outstanding amounts under the Funding Agreement are immediately payable and terminate the Funding Agreement."
Make no mistake OMA, this is in default and the default clauses applies. Forget all the conversion hullaballoo of the funding agreement. It has been terminated by the default. Like I said, it is not for certain that Lind will exercise it.
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