RE:RE:RBC Capital Markets, building the Gallows Very simple, the share holders in NVA are not the only ones with a lot of risk here, the bond holders of the 220 million in debt have significant risk.
If the banks decide, instead of getting 6.5% for and extremely high risk investment, they could get zero and a hair cut on their capital invested as well.
So the share holders are in a difficult position, the play is to buy out the bonds, then squeeze the shareholders, and maybe you get the company for the cost of refinancing.
NVA is in a tuff posiiton, and big share holders will be help POU to put them out of this misery.
POU can make money by buying out the 220 million in bonds, and they many get all the share at a price in the 50 cents range.
NVA is in trouble, the rookie finanical position the management has put the company in means they are in big trouble.
IMHO