Petaquilla Minerals Ltd PTQMF

What's The Bank Going To Do?

[wwadehammer]

Right now the german bank is probably weighing what to do to insure that it gets its money back.  At a minimum, I would think they have their own auditors in-house at our Corporate Headquarters looking over the checks that go out and what they do with the gold that's being produced.  The bank seems to be satisfied with what's going on now so there's hope that the Company will pull out of this.  However, banks are not known for being charitable and forgiving, and the bank has a lot of options if they reach the conclusion that the Company can't make it, say because Lom Poy turns out to be a bust or some other creditor demands payment and forces the issue.  Not great options, but options.  They could go to FQ and work a deal where FQ makes a friendly offer at a low price and agrees to pay off all PTQs debts to the bank.  If our management refuses, the bank demands $32,000,000 payment from us under the terms of the gold and silver contracts that we have defaulted on which forces us into bankruptcy.  That's a really messy way to go as Fifer would pull all his political strings with the Panama Government to put pressure on FQ not to offer the buyout.  Really ugly, but if FQ sweetens the deal for the right government bigwigs and Fifer doesn't have enough pull, FQ could get us for a song.  You have to bet that FQ is making friends in the right places in the Panama Government and they have a lot more money to work with than our Company.  The second options is brutal but straight forward.  Force us into bankruptcy,  The bank owns most of our debt and would get the lion's share when our assets are sold.  I'm sure FQ would buy the assets.  Again, not pretty but eliminates Fifer's option of going to the government for help.  Our shareholder value could be wiped out in day in the bank so decides, must not be fun for our management team knowing that the ax could drop at any minute.