Post by
bond46 on Jan 09, 2013 4:56pm
CMK goes on care and maintenance for 3 years
Forget about selling the company. It's getting clearer now what Bates has in mind and dilllution will become inevitable. 1. Bates, though he knew that he could not make the interest payments on time, I doubt if he made an effort to sell the coal in stock at a disount price to meet the obligation. 2. He let things slide presumably out of control, in order to appeal to the "emergency" rule of the TSX and not have to face the wrath of the shareholders when a company issues new shares 25% of the existing shares. That emergency provision allows management to side step the shareholders. So Bates was aware well before going on default what he wanted to do. He wants to put the company in care and maintenance for the next 3 years, forget about the sale of the company. The man is obssessed with holding on to this company, he is sick. This is almost the same scenario that First Nickel went through and for 5 years now is still trading at 6 cents. He wants to do the same thing.
Comment by
shane117 on Jan 09, 2013 9:02pm
bond, if he doesn't do anything before Feb 28th then he will have nothing left to hold onto. The bond holders will own the company and most likely fire him. So, I have to respectfully disagree.