We need to push for Bankruptcy CourtAs I have said in the past, protection from the Bankruptcy Court is a key way to fight off Severstal.
We need to find a way for HRG to declare Bankruptcy.
I value our assets at an extremely conservate fire sales price of $383M US, while our debt is now only $106M US.
Right now many of our assets are pledged and cannot be sold. Everything will be in play (available for sale) once we are in Bankruptcy protection. All we would need to do is sell Berezitovy to retire 100% of the company's debt then we will emerge as a 210,000 ounce producer, going back up to 360,000 ounces in production (in a couple of years once Bissa is online), and we come out of bankruptcy 100% debt free, and free trading.
Our share price will eventually be back to $2.50 plus. This is a far better option than $.22 (you later sucker) price.
THE PROBLEM IS THAT SEVERSTAL, THE "INDEPENDENT COMMITTEE" AND "HRG'S MANAGEMENT" ARE ALL IN BED TOGETHER, IMO.
Lock, Stock and Barrel!
HRG's Management has been allowing Severstal to guarantee the various debts (and taking huge HRG shares for some, as in the case today), instead of allowing the company to be pushed into the bankruptcy courts (where we would be allowed to sell our huge frozen assets to pay off debt). This has been a continuous advantage for Severstal and a huge disadvantage for minority shareholders. Severstal now guarantees $43M US debt to Nomos and they completely took over the $27M debt from Standard Bank. Minority sharesholders did not have a say in any of this.
HRG's management would push back and say that it was in the best interest of all shareholders to allow the Severstal actions. However, how is this I ask? It has allowed Severstal to corner the market and have an unfair advantage of the situation.
I don't see a $.22 takeover offer being advantagous to minority shareholders when we could have gone through bankruptcy courts, sell one or two assets to close all debts, and emerge with minority shareholders realizing a substantially greater share price than $.22.
Again, it is my view that HRG's Management did not act in the best interest of minority shareholders.
I wish we had a way of pushing HRG into the Bankruptcy Court now. It's seems impossible as minority shareholders do not seem to have a voice with this company, and HRG's Management has no interest of bringing greater value for minority shareholders, IMO.
MINORITY SHARESHOLDERS HAVE TO UNITE COMPLETELY AND VOTE NO!
IF ANYONE HAS CONNECTIONS, THEY SHOULD TRY TO GET HOLD OF SPROTT, CORMACK AND SOME OF THE OTHER BIG MINORITY STAKEHOLDERS TO CO-ORDINATE EFFORTS.
LET'S KICK SEVERSTAL IN THE ____S!!!