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Yes 90% of these shares are held by institutional investors and some major shareholders like Candy brothers and couple of others hold 70% between them.Candy brothers had tried to take in private in 2010.They bought most of debt and not only charged extortionate interest rate but wanted to wipe out other shareholders too by imposing debt to equity swap at one point.
This whole system cost them 150 millions if I remember correctly but I have faith in Darren.It is all about building the cash reserves now and lets see how far can it go.They are buying some more assets as well.Whatever way you look at it numbers look really good.I am slightly concerned about major shareholders but company is in a really good position as far as production and cash generation is concerned.
I am buying whatever I can at the mintue and building up nice holding.Debt will be paid soon and company would start building cash reserves from there.This company was about to go bankrupt and Darren has turned it around.So lets see how it goes from here.
Horrendous results as looks like they would burn through cash balance in 6 months or so at this rate.
I am not disputing that but can this oil be distracted economically is another question.Right now creditors hold the card and even if asset have some value it will be sold to pay off creditors first and shareholders wont get anything.
I dont believe that asset is good as in my opinion it was a hogwash to fleece shareholders.If asset was that good tjey would have got RBL and would need to raise money through placings.Even if they bring in new management it will be pointless exercise as they will need to pay off 135 millions .
Spot on Steve, bondholders would convert bonds to shares and sell them to drive the price even lower rinse and repeat.This asset is worthless and there should be an investigation into it as why wouod he pay that much for these assets.
Problem with that is bond price would be reset and we will see further conversion.There is no way out as I suspect we will see consolidation and rinse and repeat. Looks like quite a few people are trying to pump and dump it.
Good luck though, as over the years I must have seen hundreds of frauds but only couple of them were brought to justice.They have changed the tactics now, CEO resigns company chsnges its name and venture into new field and then fleece investors rinse and repeat.
Like retail investors would be allowed to take part in "this open offer" but that wont gain anything as company had total liabilities of 135 millions and would need to keep tapping market time and again. These assets are worthless so bondholders are in the same boat as private investors.