RE:RE:RE:RE:RE:RE:FAIRMONT RESOURCES CONDEMNED TO PAY. muchogusto wrote:
Hey LaMarcus, that would be really hard to get business into Fairmont again. Who can do that? What will the board decide in August? Fairmont has no cash and a lot of debt now. Seeking for partners to buy Grabasa? What else? Really? Only the Silica Properties can bring back positive sentiment, or a better offer for the Rome Property within the next 24days!!! Even more...GLTA
From experience, distressed company never get the premium price for their assests.
I don't think Fairmont is recognized for the quality of its assests. In any case, they have no assets in or close to a production scenario.
Reasonnable assumption is that for Fairmont to buy Grabasa, if this is still a realistic assumption ( big if ... from my point of view... everyone entitled to their opinions ), they would probably have to pay the 400 000 euros at the same time(plus other related fees if applicable).
Reasonnable to think the court would seize(on demand of the claimant) any local assests (cash) Fairmont would put on the table. But that, in any case, was an amount Fairmont was willing to pay in the event of a succesful purchase, so, it's in their budget (less the fees/penalties/additional new services fees ... of course)
By rule of thumb, finding risk ready investors to participate in a "take 2" project would require that current management convices/persuate new investors that the "faillure" and "condamnation" was something out of their control, and that odds that it happen again are 0. That would be a challenge if that investor was me. But that would be less of a concern to me, that the main question before financing a project:
1. Grabasa didn't succeed. Is in liquidation and no one showing interest to pay a good price for the assets : one need to do better than predecessor and have great skills in the market.
2.Fairmont management doesn't have any producing assests, why would they be fit to put back together some "bankrupt business". What experience do they have?
To Resume:
1. Is Grabasa a good business (even if purchase price can be attractive)
2. Is Fairmont current management able to run that "show" to a success (with a return for shareholders)
3. Is Fairmont able to raise the money?
If you are not convinced of point 1 and 2, you can forget 3: even if they do find the alternative (take 2+) funding!