estimate of PwC's balance sheet as of July 11, 2019
Update balance sheet again
Resource Capital sold substantially all of its assets to Sprott Lending for $2.2M
Resource Capital expects to be deemed bankrupt following July 12, 2019.
Damian explained as ...
I found out today that the 2 million dip financing was used to pay PwC and jack a large sum and that Sprott gave it at 18 percent interest and then forgave the company for the 2.2 million and took over all properties for 2.2 million while leaving the company with the 8 million secured sport debt which they will write off and make millions off on tax losses.
This means they actually will make money [tax loss credit] because originally they signed a deal that they control all assets as collateral based on their loan that was secured. As a result of offering the 2.2 million, they just took over properties for the 2 million and not their secured debt.
PwC wrote ...
As the sale does not provide sufficient proceeds to satisfy the secured debts owing by Resource Capital, the group does not anticipate being able to file a viable proposal to its creditors. As a result, Resource Capital expects to be deemed bankrupt following July 12, 2019.
Below is an estimate of the two balance sheets
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excerpt of Sprott Lending balance sheet
ASSETS
Development property 2,200,000
Exploration assets 0
Reclamation bond 0
Plant and equipment 0
Credit Facility 8,244,300 **
Total Assets 10,444,300
LIABILITIES
Shareholder equity 10,444,300
Total Liabilities 10,444,300
** Tax Loss Credits
Sprott Lending is expected to incurr an est. 8,244,300 Loss on the Credit Facility
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RCG balance sheet
ASSETS
Cash equivalent 2,200,000 paid for properties
Cash 10,559
Receivables 44,254
Prepaid expenses 63,401
Net fixed assets (RCG) 19,910
Land (MGC) 99,270
Total Assets 2,437,399
LIABILITIES
Insolvency payable 2,200,000 owed to PwC, Jack, etc
Accounts payable 7,270,353
Promissory notes 103,551
Credit facility 8,244,300 ** still owing
Asset Retirement 569,535
Deferred tax liab. 2,147,000
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20,534,739
Shareholder equity (18,097,340)
Total Liabilities 2,437,399
shares outstanding 174,790,696 shares
book value = (10.4c/sh)
See also
https://stockhouse.com/companies/bullboard?symbol=v.rcg.h&postid=29893149
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Notes:
1)
In connection with the Credit Facility, the Company has granted security over substantially all of its assets in favour of Sprott, presumably including the Plant and equipment.
2)
Estimate of PwC balance sheet originally posted on March 19, 2019
https://stockhouse.com/companies/bullboard?symbol=v.rcg.h&postid=29507943