im at a loss with this one13 Jul 2013 08:46
The asset is good, although dominion not necessarily the best operator in town.
So, if you need to save the company, wouldnt you just
1 go out to existing shareholders to fund the immediate debt to dominion. Not a great amount. I would have supported such a move.
2 negotiate a delay with mafl of 6months to repay the loan note I.e. they don't need to write down 88%, so they would agree I presume
3 auction the asset ourselves, not let dominion take it away from us
4 use the remaining proceeds to form a shell.
Based on the last net asset value, this would easily have provided for the last traded share price, if not higher, and that's after all loan notes are repaid.
I remain confused as to why Andy has not cone up with a great plan. However, maybe he has. Still need to wait and see. I have written it off, so if it comes good, great!
The mafl RNs was very positive about q3 value for shareholders. So they would appear to be taking an equity stake in exchange for the written off loan.