RE: Sold7 May 2021 01:22
Hi adoubleuk,
"The company is NOT insolvent. The BoD is simply projecting ('foreward statement') that it may possibly become so in 15 months' time."
Can you provide why you think that it's not insolvent?
The company can produce ECONOMICALLY between now and May 2022. But as it stands, the company is insolvent, not because the BOD are projecting on a forward basis, but even if the operations carry on as is (which they will even if restructure plan doesn't pass), the company will belong to bondholders.
There is negative net assets here following the huge downgrade in reserves/resources.
"And any judge with the least amount of grey matter between he or her ears will immediately question what has been done by the Directors to try and avoid such a situation, as is their duty, to protect the shareholders. I'd be interested as to what kind of answer might be given to that."
Well.. if you had bothered to read the link I had posted in a reply to one of your previous posts.. you'll know that the restructuring plan does not consider shareholders..
Here's the link: https://www.dlapiper.com/en/uk/insights/publications/2020/10/restructuring-global-insight/restructuring-plan/
Here's the reference to shareholders in the new restructuring plan under Companies Act 2006:
"So shareholder rights can be amended by the Restructuring Plan?
Other than permitting a compromise or arrangement with members in order to deal with financial difficulties, the Act does not deal expressly with the rights of shareholders. However, the intention underpinning the Act is that shareholder equity can be transferred, diluted or extinguished as part of a court approved Restructuring Plan which makes sense in the context of distress where shareholder value is likely, in real terms, to be materially impaired, if not nil, based on the then subsisting valuation of the business. The Act includes amendments to the Companies Act, including a disapplication of shareholder pre-emption rights, which appear to be intended to facilitate a dilution of shareholder rights pursuant to a Restructuring Plan. The ability to bind in shareholders can be a significant additional hurdle to achieve successful restructurings and these implicit powers are likely to be welcomed as part of the additional powers that companies now have under the Act to promote corporate rescue and recovery through the delivery of a viable Restructuring Plan."
"Instead, it's a court decision, with many, many reputations at stake. Not just that of the judge, the BoD, assorted investors, bondholders, and so on, but assorted journalists, people like Malcy, other professionals, etc.,etc, etc.."
The court decision will be under the UK Restructuring Plan - see above. Nothing to do with shareholders and does not give any thought to shareholders, under the law.
Look forward to your response on why you think it's not insolvent.
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