EXPM:HRTFF - Post by User
Comment by
MudCreekeron Nov 22, 2021 11:24am
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Post# 34152997
RE:I suppose
RE:I supposeBNP holds those hedges. The description of the credit facilities that Silver Lake bought was pretty specific and detailed, with no mention of the hedges. I'm interpreting that to mean that BNP still holds them, but I could be wrong.
As a future obligation of Harte, they might be wiped out in bankruptcy anyway. When they restructure a company, it's common practice to separate the assets into the successor company and leave the liabilities in the existing shell that winds up bankrupt.
Silver Lake forecloses Dec. 1, and gets ownership of the mine. Harte as a company is left with no assets and lots of liabilities. Lawyers will work out the details, but Harte, representing the shareholders, won't be able to pay lawyers.
As far as that blurb about co-operating with all the stakeholders to make the mine a success, of course they want the mine to be a huge success, but don't confuse stakeholders with shareholders. To the employees, the community, the suppliers, the contractors, the governments, etc. this is a positive development - the continued operation of that mine appears much more secure. Unsecured creditors and shareholders not so much.