Red Lake Madsen Mine Ltd LRTNF

RE:RE:RE:RE:Company was not in compliance with its covenants

[Sherry35]

If the assets sell at auction and the published debts are accurate, the common share holders could see some money. This could take time as the court monitor and executive decide how to carve up the pieces. And, lawyers and court monitor will want to stretech this out to make money. I lived through a very high profile CCAA.

I believe the operations in care and maint. which means nobody is going to get paid now or very soon. As stated in the Sept financial filing, the lenders aren't getting paid. Not shedding a tear for them. Taxes aren't being paid. Wages are being paid to key staff members for either manit. of the facility and/or possible reboot.

The best option is to write down the debts first, and then refinance the reboot using a gold loan and gov. bailouts. Everybody stand a chnace at making money. Another option is a major makes an offer to acquire the company through common share purchase at 10 to 35 cents - all debts erased.  All of this has to be approved by the judge which is subject to debate by the creditors legal counsel. The lenders won't be happy but they write off their losses. Based on my CCAA expereince, the CDN commerical courts are corrupt so a low ball offer could go through in favour of a major.

The longer they wait to resolve the CCAA action, the longer the investors waits for their return. The lawyers and court monitor are going ka ching. Last point, the Federal Insolvency and Bankruptcy Act is now in play given the company has approved CCAA. This is a Federal matter especially when it comes to the nationality of a potential acquirer.

I suspect most of the volume at 2 cents is major holders solidfying their CNIL on their common shares aka belated tax loss season. I would.

I'm not invested in PGM. This is an open forum. Don't like my posts, don't read them.