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Looks like the Creditors are taking complete control - without the debt the company is saleable so they will be able to get back pennies in the £ provided they make the senior loan to prevent a complete collapse of the company.
Tough luck to shareholders who seem to have lost their shirts.
It is not something I have come across before to be honest.
They must also believe there is still value on the assets as this has been secured against the assets!
I, too, am struggling with reconciling the $5 million loan for funding daily operations and other debts with the supposed impending administration; has anyone else ever witnessed a large loan to a company in order to prepare it for administration?
Hi AJones,
I have been thinking the same thing; $5M is a lot for just backing this into administration.
Let us hope that we are not naive.
Best wishes,
Prof
Administration how? I have never heard of a business getting 5 Million in extra Loans to carry on with day to day running of the business? - To me they are trying to show that with the debt refinanced this would be a profitable mine. Do not get me wrong it is worrying but also promising at the same time.
Protection from Creditors means nobody can sue for payment. The new loan will be first in line for repayment before the secured lenders (who are probably providing the loan in anycase). The loan is probly for working capital to ensure the mine keeps operating before a sale.
This is administration.
Well from what I was getting yes it was matter of sorting out money. But now seeing what plan is. It’s different story totally.
>best time ever
It certainly is, just not for PIs :-) PIs are being made to PIs(s) off
But moonie it's the best time ever. Shame they didn't let you pay to run the mine for a year.
Listen i kwn am ******* in many cases but we all need to come together right now before Brad mills take mine we lose everything
Right we all need to plan together nxt step. We got small life line before Brad mill take this away
This is definitely a private Frasier moment in my opinion, for what it's worth
Doesn't it also mean that as the fresh loan capital hits the balance sheet it stops creditors who are owed monies suing for settlement of their existing debts - it protects the new capital from old debt claims. Thanks Blue
Why do they even need 5m? Have they not been making any money at current copper prices?
Who has actually loaned us the $5 million?
“RMMCL has entered into a conditional DIP agreement for a loan of US$5.0 million with RMM Debt Limited Partnership by its General Partner RMM General Partner Inc., representing certain senior secured lenders to RMMCL”
Is this Brad Mills lending himself €5 million so if it goes tits up, he receives the company as payment? Can anyone explain or put some meat on the bones?
Yes it’s adminration kinda. while we sort out nonsense
This is the beginning of the end then.
RNS a day later than my prediction. Doh!
Good or bad??? We know what’s going on.
As pledged, if I was wrong, £100 sent to BHWT on Saturday.
50 chickens saved from slaughter.
It's a certainty.
This is administration to protect the debtors. Shareholders get nothing and unsecured lenders get a haircut.
Hi All
If it helps I am aware of a couple of companies that that got a CCAA and may be useful for your own research...
Puregold (PUR) lse
North American lithium Inc
My personal expectation is you're likely to see the approval fairly quickly....this week IMO.
In both the above examples, after being granted protection under the CCAA, they both initiated an SISP.
SISP is a sale and investment solicitation process in an insolvency proceeding under the Companies' Creditors Arrangement Act (Canada).
It doesn't mean RMM will have to go down this route but I think it's likely. So my view is the CCAA will be approved this week and then they are likely to initiate an SISP and possibly delist after 6 months of being suspended.
Generally isn't great for shareholders as in above cases. RIG will not have influenced this IMO it's one of the last resorts to save the mine and jobs and give a little time etc.
Just my views. Hopefully they pull a rabbit out.
Atb
How?? Won't all our shares become worthless?
Am okay for wipe out. long term we get there
Basically, there's a good chance we are all getting wiped out.