RE:RE:RE:RE:HumOregonduck wrote:
Lukas Lundin has the wherewithal to inject another $50 million of new capital into RBI to stave off bankruptcy, and yet, he let the Company goes into creditors' protection. Why ?? The clear answer is that RBI's business plan is not viable - high costs and over-stated resource estimates. Canada Lithium was never able to get the Lithium business off the ground despite pouring over $200 million into the black hole sucking up shareholders' money. Don't forget, it was Richard Clark that pulled the plug on this critical care company at ICU and left it for dead in creditors' hand. No company has come out of any CCAA proceedings alive.
Really??? Tell that to Donald Trump. He has sought creditor protection on four separate occasions and was quoted in Forbes as saying that "many great entrepreneurs have used bankruptcy to restructure debt, free up capital and improve their businesses."
Why did Lundin not jump in to spare RB in October? There could be many reasons.
But that was then ... and this is now.
Since Oct, the environment has completely changed. Oil prices have dropped significantly, SQM is in turmoil, Potash Corps is re-evaluating its strategic alliances, demand for lithium is stonger than ever ...
Don't count Lundin out of the picture just yet. He might well turn out to be our white knight ... alone or in combination with another invester.
Never say never.