How do you define Bankrupt ? From the NR we now we have the reality
Working Capital and Liquidity
“As at March 31, 2013, current assets were $2,104,494, including cash and cash equivalents of $1,643,888. Against current liabilities of $8,974,703, this results in negative net working capital of ($6,870,209), primarily due to the inclusion of the $7 million Romspen loan, including accrued interest, due in July 2013 as a current liability, as its maturity falls within one year. This compares to current assets of $3,321,747 and negative net working capital of ($4,801,379) as at December 31, 2012.”
Comment
You can only keep losing cash for so long before a creditor will lose patience and panic that there is no more cash lose confidence in the JV search and then petition to the CCAA for BXI to force an execution of a secured debt..
This will force BXI to hand over the “debtor in possession” to assume control the continue the ongoing JV talks leaving the shareholders with nothing.
There may still be some JV deal for BXI down the road but it may not give any value to the current shareholders who will be S.O.L. and end up as bag holders when there is a TSX halt trade and/or delisting for the common shares.
The $ 5,000 weekly paycheque fro CS still clears even when there is no cash
The painful string along jig may soon be mercifully over –
6 cents may look good tomorrow