RE:RE:RE:San Gold Obtains Order to Extend Time to File ProposalAzzenmcelbow wrote: bitwit, maybe you have to school me again...
if you're going into a merger, aren't you going to want the loan guaranteed so you can show both boards you have it in place before advancing?
the merger didn't go ahead because the working capital loan fell through, but the DIP lender indicates it's perfectly willing to lend. p 29, para 92.
it doesn't make sense.
If you read pg 14 #44 they explain what happened but not the reason the working capital loan fell through. It's a long shot, but you can try calling GG to ask for more details.
In regards to the DIP loan, it's not the same thing. Basically pg3-4 #6, 7 pg 5 #12, pg6 #15, 16, 17, 18, 19, 20, 89, 91, 92, 107, 108, 109. They explain the DIP loan's specifics and outline what the loan will be used for.
Basically SGR was frozen out of regular capital markets, and Beechwood (DIP lender) provided a 14% loan and also has secured debt priority if SGR goes bankrupt and has to liquidate all their assets. (Google DIP loan for explanation on what it is, and how it's a special type of loan to insolvent companies who need immediate liquidity to keep operations running)
Some interesting facts:
1) Payroll costs are approx 3.3million CAD/mo (pg 20, #65)
2) SGR pension contributions are 200k/mo and presently 159k in arrears and SGR plans to keep making their contributions during these proposal proceedings (pg 20 #67, #71)
3)In regards to admin charges, legal fees cannot exceed 250k (#113)
4)For directors charges, it's outlined in #115 - 121
5)All priority charges are outlined in #122 and #123 (it includes that DIP loan)
Anyhow, if you got stuck w/ shares during the trading halt I would highly recommend not taking the capital loss until we know the outcomes. As NOI proposals go SGR is actually in pretty good shape and the court documents reflect that as well.
It's not guaranteed, but from reading everything IMO secured creditors will be more likely to get paid back if they work w/ SGR instead of forcing them to liquidate.