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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by bond46on Jun 18, 2013 12:43pm
164 Views
Post# 21537843

RE: RE: RE: RE: Good Omens?

RE: RE: RE: RE: Good Omens?

My take is there will be no bankruptcy despite what you hear from the babble mouths of this board. The reason: the market conditions are such that if Marret forces bankruptcy and does not sign a "forbearance" agreement with Cline, they won't even get the liquidation costs to dispose of the assets, never mind getting their money back. So, it would be in the interests of Marret to  "give ground in order to gain time" given that the BC lawsuit has not been decided and the other assets is hard to sell at fair market value in this environment. But again, they may choose to write off part of their debt and get what they can through bankruptcy. If that happens, there will be no equity left for the shareholders and they get nothing. if however they force bankruptcy when the coal market has rebounded, there may be some left for the shareholders, but not till then. So I would say all signs point to a period of re-orgainization and cost cutting to the bone with a view of going into production, and while the company is not listed in the TSX.  

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