yellow10 May 2013 11:45
you can be a bit concerned, that's OK, the situation is a bit flaky. Take comfort in the fact that should a loan extension be declined before the conclusion of the sale and be called upon, the book value of assets outstrips liabilities comfortably in the event of liquidation. It just means your money is tied up for an uncomfortably long period before payout. As they've all been paid in shares for some time now, I would hope they negotiate hard (and quickly) on realising value in the asset sales.
In all likelihood, I think they would issue equity to repay the loan (which makes liquidation a moot point), an issue wouldn't be ideal for any of the parties involved, as we will all take quite a hit on our investment.
Since the loan facility was happily increased to facilitate the planned maintenance, presumably an extension is a foregone conclusion. It also corroborates the theory of their book value, Bluestone wouldn't throw money at IPSA if they didn't believe in realising value from the balance sheet.
A side note, if the company is liquidated, I think the 2M success fee would still be valid, so that def ain't happening.
As they say, patience wouldn't be a virtue if it was easy.