OTCQX:SREMF - Post by User
Comment by
Ranger56on Oct 10, 2014 11:46pm
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Post# 23021101
RE:Betwixt and Between...........
RE:Betwixt and Between...........Camaroni, well said, interesting comments. But I am not sure there is upside for creditors to take this into creditor protection. In simple terms, when this occurs, normally assets are sold at a deep discount and the proceeds used to pay off the creditors. So it seems to me there is risk they will have to take a material haircut on what is owed to them. It seems to me they would be better served to take over the company, inject more capital with a mix of new investors and customers, finish this project to the point of cash flow, and then stay whole reveiving interest and perhaps revised debt repayments as normal. The choice is do they take on a little more risk to stay whole, or, or do they risk taking a haircut now and just accept the losses. The fact that the project is so close to completion, it would be tempting to take on the extra risk, see it through, and ultimately avoid losses.