OTCPK:FRSAF - Post by User
Comment by
JohnEStromJron Feb 21, 2012 1:00pm
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Post# 19561821
If Fire River defaults....
If Fire River defaults.... If Fire River defaults on repaying the Sprott loan the company and all of its assets go to Sprott. Sprott IS the largest shareholder as Fire River pledged those assets to get that $7.5 million loan but I think Sprott would simply go through a reorganization, dump common stock shareholders and come out of bankruptcy owning Fire River. We would be finished. That's what bankruptcy means - common shareholders lose everything. Only bond holders and lenders [Sprott] have recourse. Maybe Canadian bankruptcy is different but I doubt it.