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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by ark88on Jan 03, 2013 10:36am
181 Views
Post# 20792280

RE: Feb 28th

RE: Feb 28th

Cline is finished. Immediately after this "restructuring" news was released, I posted that the only play left was a buyout. Now the question is even if there were interested buyer/s, why would they buy now instead of waiting to deal only with the bondholders.

 

If they buy now, they would pay for the equity plus debt. If they wait after the bondholders take control, they would be only paying for the debt and related charges. Basically, they would buy the company for the debt and not pay a penny to the shareholders, the owners of the company/assets. What would you do?

 

The way the bondholders have structured this is very smart as they would take control while avoiding bankruptcy proceedings, which would deny them the control of the assets. Like I've said, bondholders are generally a lot smart than equity traders.

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