RE: HRG managementYou know how the share price has been beaten down over the past year due to the perception of heavy HRG debt, right? Well, I find it amazing how they can disadvantage minority shareholders of page 11 of their latest presentation and get away with it.
On the presentation, page 11:
"Debt: US$122 million"
"Shares: 649 million outstanding"
Anyone notice a disconnect with that statement? They attempted to justify the recent hand over of 59M new shares to Severstal as being required to address current liquidity challenges (although only $5M of the $10M financing actually went towards the urgent May/June debt payment of $15.5M, hmmm). Prior to the financing, HRG's oustanding share count was 590M.
On page 11 of the presentation, IMO minority shareholders were disadvantaged by showing share dilution of 649M oustanding shares, including the new 59M.
So, I ask, where is the corresponding reduction of debt from the May/June payment. I thought that the issuance of 59M new shares was business critical, or so it was presented to us, in my view.
If the $15.5M payment was so important to HRG then how could they not show that reduction in the debt total. They are showing US$122 for debt (May 19'09 NR), which represents the balance prior to the US$15.5M May/June payment.
By showing 649M oustanding shares they needed to show the debt balance at US$105.5M, otherwise it completely disadvantages minority shareholders (IMO), ESPECIALLY GIVEN THE FACT THAT SEVERSTAL, THE MAJORITY OWNERS, HAVE LAUNCHED AN OFFICIAL TAKEOVER BID FOR ALL OF THE MINORITY SHARES.