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....and do the deal prior to the court hearing in Botswana in February..
Thanks Ideas, good summary of the options.
I'd go for the simplest option - Option 1 - Cradle Arc has simply run out of money. They may be hoping the administrator can do the deal that they could not on Mowana, and that they will realise some cash from the asset.
Definitely this is Cradle Arc, the holding company, and not Leboam in Botswana.
What I don't know well enough is where the assets are and how that interplays with insolvency laws for what you might want to do. For example:
1) You've run out of money at Cradle Arc and have bills that you won't be able to meet
Plausible
2) Leboam share sale with assets as a going concern (if it holds the Botswana assets)
Presumably you could do that anyway and don't benefit from going into administration?
3) Leboam asset sale - you want to extract the Botswana assets and get those into a newco before the Leboam process concludes (leave aside ethics and any legal implications)
Presumably the assets are locked up and protected in Leboam under the provisional liquidation and cannot be extracted
4) You want to protect Cradle Arc's non-Botswana assests by transferring those into a newco
Leboam's separate legal personality would mean that assets outside Leboam are out of reach for creditors of Leboam (unless contractually there are any parent company guarantees or security given). If there are parent company guarantees or security and you think you are running out of road in the Leboam liquidation then extracting those assets could make sense logistically but would not be acting in the interests of shareholders or creditors of Cradle Arc / Leboam.
Any other scenarios that people can think of?
wtf has Strand Hanson been doing for their money....seems like nothing?
any due diligence on CRA?
not advising that the fundraise should have been for more?
no attempt at money raise for $4m....not even PrimanyBId!
advising administration to protect assets from leboam breakup maybe?
and FCA/LSE will be no help.
gla, for what its worth.
I feel your pain mate
Yes, that align article post 4m fujax loan got me interested in this share..if only i haven't read it ..ffs
This seems like a voluntary administration by CRA directors as a final push to see if creditors can agree to some sort of deal to maximize chances for better returns for them if company is allowed to continue as opposed to whats possible in immediate liquidation/winding up.
This sort of deal with creditors is essential before anyone can even consider financing it (existing or new players).
Anyways thats what I understand from today's rns...
Gone very quiet. Pumping it at .9p
is correct, not only have we lost Mowana, but also all the other assets. There will be nothing left for shareholders after this is all done.
I think we have all misread the RNS. The 'Company' implies CRA, not Leboam (Leboam is not in administration). It is entirely possible that the judisicial order is still ongoing and is scheduled to be heard in February. However, given CRA will be in administration, I fail to see how this will occur. The RNS is ambiguous.
I have always thought that the original deal / reverse takeover to buy Mowana and then become Cradle Arc was far too complicated to run smoothly or even successfully but I had to hold in here due to the original suspension and my 'huge' losses already accrued from the Alecto days and the vain hope there would be some revival.
I do feel there is an element of brinkmanship here but at the end of the day, if the subsidiary (Leboam) is basically in administration and then the parent has sought an administrator, it does look a bit bleak. For now though, we must hold out some hope that someone might step in to put everything right.
But I do feel that this has overall been a bit of a 'swizz'! Cradle Arc - Cradle of Filth, more like!
Should be wearing masks! Robbing TW*TS!
Me too, and such short end! As though we are secondary, which of course we are. Another African small cap failure, and it is a fail, goes to the dogs. No wait a minutes the bod are the dogs here. I do hope that those with large investments have alternativels that are doing better than this hound. I say cheerio to 250 quid, but was worth the ticket price to see the show!
If CRA can secure the tax rebate from HMRC, we can keep the lights on for another six months. There is no chance of developing the Matala Project. Our best bet is to sell it - which we've been trying to for the past 12 months - and use proceeds to reinvent ourselves. Maybe Con Jones and Kevin Van Dumber can start up a mining consultation business?
I had already dismissed the probability of securing further funding as our creditworthiness was so abysmal, no lender of sane mind would have agreed to lend.
1) Chairman and two NED's resigned.
2) Institutional shareholder divested entirely.
3) Significant shareholder, who oversaw the implementation of drilling and blasting equipment, divested entirely.
Ultimately, we are to blame for being naive.
Bullocks!
A large portion of our debt is secured and therefore all proceeds from the distressed sale of assets will be allocated to debtholders, thereby leaving ordinary shareholders empty-handed. The secured debtholders will subsequently form a new entity, operated by a management team different from the one appointed by CRA. Further, CRA will no longer have involvement in the Mine - in any capacity - as they have proven themselves incompetent.
Yes prepack and Newco. Had to be done at the plc level I think as the creditor got to court first with Leboam. We have all lost our money here.
Could we get our money back.
how much of this is them playing hard ball (& brinkmanship) with lenders/creditors?
They haven't even 'appeared' to have tried to raise funds to clear the debts and get the Company trading again.
Yep, it's definitely one for the FCA to look at and I for one will be contacting them as this sorry story unfolds.
How many different assets does CRA have?
Could it be sell everything else and keep the copper.
Could that save the business.
The objective of the Administration is to enable an orderly realisation of the Company's assets with a view to maximising value for creditors and shareholders and, if possible, the survival of the Company.
Happy new year, Well well, there you have it. Ordinary shareholders shafted as is usual with these type of companies. Won't be surprised if they try to do it all over again. Fourth time anyone?
No sure it is the end, they clearly realise that they have assets to sell and realise money
I think this was a scam from the outset, getting the placing to pay for the rehabilitation of the mine, then 4 weeks later saying that they cannot go forward as they do not have enough money
The mine has been sorted and now the assets will be sold to NEWCO and the mining operations will continue
The FCA will need to look at this