Gryphon Gold Corp GYPHQ

RE:RE:RE:RE:RE:Chapter 11 Update?...

[metcoalfan]

An appointed Chapter 11 trustee is now running the show.  I've been following the court docket again over the last few weeks and there is some sliver of hope.  Waterton was pushing hard for conversion to Chapter 7 because mgmt and the BOD basically went AWOL and nothing was happening at Gryphon.  The two activist investors were pushing hard to loan Gryphon 500k to fund an examanation of everything that went down to discover the extent to which any shenanigans occured.  I have my own opinion about shenanigans, but it's just my opinion.  With the recent appointment of the chapter 11 trustee to steer the case going forward, the court ruled to deny the Waterton motion to convert, but without prejudice, meaning Waterton can bring it again later.  The trustee has piped up to say she is new to the case but is familiarizing herself with the case and documents.  One statement she did make to the court is interesting - and that was that while Waterton made all these claims about fairness opinions being given last year - none were done and Waterton was mischaracterizing many things.  This may indicate an willingness on her end to motion to take the loan to fund an investigation.  That's really the only chance.  There are rules in US bk about dealing done in the 'zone of insolvency'.  It is possible to unwind deals made there, especially if it can be shown that things were not on the up and up.  Now that doesn't get the company out of the frying pan - if there was an oppty to undue the Waterton JV, I believe new money would have to be brought to the table, and that would probably be tough if this current environment for mining prorperties.