Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I don’t think the correct moral question is being asked of the lenders. somebody needs to press them on why on earth would they agree to borrow nmc such large sums of money? That is the crux of the issue, and where a lot of the blame lies, surely? It’s no different than the gfc where the banks issued all those NINJA loans to those who could clearly never afford them!
In an ideal world the authorities should really deal with it between the banks and the fraudsters, and leave nmc out, they were just the tool used in this mess. Ofcourse that will never happen.
This is a BIG IF, If the shares were to be re-listed (not sure if this is possible) then would the shares we own still remain in place?
I have a really large exposure on this security and very concerned. I am willing to hold out for five years but losing the money is going to be painful...
Don't think the terms around the debt structure is clear yet. But I suspect there will be a mixture of senior and junior creditors. Think of the senior creditors as having the secured debt and junior creditors having the unsecured debt. I doubt that ADCB would be a junior creditor, and I doubt a junior creditor would force adminstration because in the event of the sale of the business there would not be enough cash to cover any of their exposure and would almost guarantee junior creditors get 0 back.
administration is not the same as bankruptcy liquidation. It is a measure designed to ensure that a company’s operations can continue even in financial difficulty. That said, the outcome for shareholders is annoyingly the same.
Quite interesting dynamics at play here. I think there are 3 camps. NMC Board, junior creditors and senior creditors. It looks like the junior creditors and perhaps a couple of the senior creditors don't want administration or haven't at least sought it. Whereas ADCB and a couple of other senior creditors do want it.......But......not for a quick sale of the business to recover as much as possible. It looks like the main reason is because clearly the board have pushed back on 1 or 2 (maybe more) demands and so ADCB have lost confidence and are playing hard ball. They must think administrators can do a better job than the board. If the board capitulate then I suppose ADCB may withdraw the application.
One thing that is becoming more clear though is that they all must think earnings potential at NMC is strong. Otherwise why fight over a dead duck.