RE: RE: RE: RE: RE: RE: RE: Felderhof Cash GrabFirstly-I am conflicted on this issue as I am both an ADA and RRO shareholder. Any director who is in a similar conflict should remove themselves from these intercorporate dealings. RRO shareholders have a right, legally and ethically, to be represented by directors whose sole concern is the best interests of RRO. I would question the loans at present. Yes the rate is attractive @ 10pct but given the state of the zinc market is it attractive enough? Would a third party have extended a loan at the same terms?
This may well work out for RRO shareholders. Earlier this year some associates and I extended debtor in pocession financing to a small oil company--we now own a well and acreage for which we have received offers far in excess of what we loaned the company. But we were very aggressive in enforcing our rights without regard to the well being of the borrower. RRO needs to be represented by agents who have no interest in ADA. RRO may end up as the proud owner of Scozinc -in a few years that may be the buy of the century. I can say from first hand experience that assets sold at auction these days don't fetch attractive prices-or even reasonable ones.
I hope both ADA and RRO both get through this economic tsunami-but I hope that management of both companies-and particularly the directors who are common to both-recognize the fuduciary responsibilty owed to each group of shareholders separately.