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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by bond46on Jun 17, 2013 1:42pm
173 Views
Post# 21533289

RE: RE: An encouraging sign?

RE: RE: An encouraging sign?

I am aware of the possibility of going into Chapter 11, liquidate the assets and then rebuild. The problem with this solution is that there will be no assets left afterwards to rebuild anything. That is why I rule that out a priori. In other words, if Marret were sure by forcing bankruptcy they would recoup their losses, they would probably force bankruptcy. But in the current market environment they would be probably lucky if they got the liquidation expenses. So my sense is that their strategy is going to be " give ground to gain time``and they have every interest to see the company thrive now that they have their own people in charge. They have to wait for another day for another battle if they are to get their money. May be if Cline is lucky and get compensated for their coal asset in BC, Marret will get their money and go. But not at this point. To force bankruptcy at this time would be suicidal for everyone. Two other points. It was  mentioned on this board why there is no CEO  appointed yet on the board. Very simple. It`s the TSX that requires each company has a CEO. But if you are delisted, there is no need to. All these functions of CEO, Chairman and so forth can be concentrated in one person, say the Chairman of the Board, as is currently the case with Haywood. The other thing, is , though the current CFO may be needed in any case of bankruptcy or otherwise, it would be foolish for a CFO to take up a position in a company facing bankruptcy; it just does not show well in his resume, unless he hides it. So some perspective is needed here that things are not always as they appear.

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