Cline Mining Corporation T.CMK

More simply put

[bond46]

If we go for massive dillution and CMK manages to go back to production and becomes profitable, with the profit from the coal sales it can buy back the shares of its major shareholder, the bond holders who own 2billion shares. The bondholder instead of selling their shares to an outsider, they can sell them to CMK and CMK can buy them back for 25million and destroy the shares, thus reducing the shares outstanding back down to 210million shares. This is an arrangement that keeps everyone happy. The bondholders with their money and the shareholders with the value of their shares undilluted. The only thing that is lost here is time as very rightly Ark 88 pointed out today in one of his blogs.

[larryl2]

  I’d like to clarify some numbers (I hope I understand the agreement correctly) 1.       Let say I bought 1000 shares of Cline for $1 per share for $1000 2.       I would have a right to buy ~8000 more for 2.05c or  $1640 3.       Therefore, I’d have 9K shares for $2640 or ~13cent per share cost

[retiredrcaf]

larryl2, your 8000 new shares would cost you $164.00 not the $1640.00 you stated.

[larryl2]

true, thanks (typo) the other  culculations are correct

[shane117]

larry12, when you have the option to buy those 8000 shares per 1 share you own,what do you think the s/p is going to be at. It will be at or probably lower than the orice you buy it at so, what's the point of buying under the bond holders plan. It's not like you will be those shares ata discounted price and the s/p will be alot higher than that discounted price. Can you imagine? The stock

[larryl2]

shane, I didn't say the SP will  be the same after dilution, of cause it would  plunge. What I've mentioned: if the company manages to survive with the new management appointed by bond holders and the company market value will be half of the value of 2011 before production then the SP would be ~13c. that all, just hypothec thought . In addition, of course, I absolutely disagree

[shane117]

I'm just saying that I don't see the point in purchasing shares after dilution through the bond holder rpogram because you could get them for the same price or even cheaper just by purchasing them on the free market. Anyone will be bale to get cheap shares and you don't have to be part of the bond holders program.

[miner8740]

CLINE Mining has proposed as series of recapitalization measures including a “financial hardship” application as it continues to grapple with a financial restructuring.       Courtesy Cline Mining. The Toronto-listed company proposed to amend the exercise price on 10 million outstanding warrants and exchange company shares to bondholders for $US25

[ResourceMiner]

Been on holiday, but this caught my eye from one of the pr's. Blocking shareholder say in the recapitalization plan due to financial hardship?   Cline’s share price has dropped 25% since late December and closed at 6c after Wednesday trading. To enact the restructuring, Cline has applied for an exemption from shareholder approval on the basis of financial hardship. The company contended

[bond46]

This was likely a deliberate scheme by Bates and co. to drag it out to the last minute and avoid the wrath of the shareholders. He must have known well in advance that CMK could not pay the interest on the bonds. Why he then waitied until the last moment? One of the reasons I suppose is to escape the wrath of the  shareholders that could lynch him for massively dilluting the stock. So he

[bladerummer]

Master Bates is a guy who would have been shot and hung for what he did to shareholders in any other part of the world, just wimpland canada that is too chicken to enforce anything.

[straightbull]

Just like the three Nortel executives who were acquitted today.

[Tinyhopes]

Spoken like true Canadians this absolutely Hilarious Ha Ha Ha. My first good laugh of the year. It is not funny but the way all was said is funny.   Thanks all.  tinyhopes