RE:RE:RE:RE:RE:Harte/slrbufordpusser wrote:
hrt simply has to meet it's obligations.
just as a bank couldn't take your house if your rich uncle stepped in at the last minute to meet your obligations.
HRT has showed that they are incapable of meeting their obligations on their own.
Appian might fill the role of "rich Uncle" here, since they already own debt that carries a second lien on the assets, but, Appian has shown in the past that they aren't a benevolent rich uncle, but very much a self-interested rich uncle. Some might even use the term conniving.
Appian would likely be better off if HRT could avoid outright bankruptcy, since they have offtake agreements, royalties, etc. to proptect. But Appian doesn't want to operate a mine - that's not their bag. Two miners have shown some level of interest here that we know of - New Gold and Silver Lake. I suspect Appian is negotiating with both of them (and possibly others) to come up with some solution that gets their loan paid back, and preserves, or better yet, monetizes their offtake agreements and royalties. Given who owns the primary debt now, I'd bet on Silver Lake being the final owner here, but who knows?
I'm sure Appian is looking at their whole overall picture, and they'll likely wriite off their shares if their share of the whole package can be maximized that way. The other side of these negotiations will want the lowest share price possible, and Appian likely will co-operate in that to extract value from the debt, royalties, etc.
I can imagine some sort of deal in which HRT issues a gazillion shares to the eventual owner in exchange for the debts being paid off, followed by a gazillion to one rollback, essentially wiping out the value of existing shares. This would likely be agreed to by the rich uncle, because the new owners would still be on the hook for the royalties etc. Existing shareholders would be dilluted to nothing which would suit everyone except existing shareholders.