RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:*** RCG DAMIAN PREACHING HOPE*** Digging a little deeper.
proposal
(1) offer secured creditors (sprott) 1 million
(2) offer unsecured creditors 1 million
(3) 2c per share offer. Equivalent to $3.5M
(4) Unsecured creditors might be offered the possibility to convert an offer to shares.
owing
Accounts payable 5,270,353
Lewis payable 2,000,000
7,270,353
offer
Accounts payable 725,000
Lewis payable 275,000
1,000,000
As example Gary Lewis might convert the $275,000 he is owed to 13,750,000 shares at 2c/sh.
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Below is an estimate of the RCG value.
Off balance items are marked with a star "*".
ASSETS
Cash equivalent 2,200,000 paid for properties
Cash 10,559
Receivables 44,254
Prepaid expenses 63,401
Net fixed assets (RCG) 19,910
tax credits 7,508,876 *
shell 0 *
Total Assets 9,847,000
LIABILITIES
Insolvency payable 2,200,000 owed to PwC, Jack, etc
Accounts payable 725,000 (2)(4)
Credit facility 1,000,000 (1)
Deferred tax liab. 2,147,000
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6,072,000
Existing shareholders 3,500,000 (3)
Lewis shares for debt 275,000 (4)
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Shareholder value 3,775,000
Total Liabilities 9,847,000
Bottom line.
A buyer would get $25M of tax credits plus a shell for $9.8M in a mix of cash and shares.