GREY:VITFF - Post by User
Comment by
givemeabreak1on Jul 23, 2024 11:56pm
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Post# 36145578
RE:RE:Victoria Gold Management needs to 🛑 making headlines!
RE:RE:Victoria Gold Management needs to 🛑 making headlines! Husky
If the mine goes into CCAA it does not go into the control of YTG but rather continues to operate paying salary's as they occurr but not paying unsecure and secure debt until cash either runs out or an infusion happens. Any cash debt comes under 'debtor in possession' so it becomes first to be payed even before gov and secured debtors........If they come out of CCAA shareholders are typically wiped out. Secured debt is payed on a percentage basis and unsecured debt is also wiped out or payed out on pennies on the dollar.
Should they not be able to come out of CCAA then they go to bankruptsy at which time assets are sold off to pay secured debt usually pennies on the dollar......
My guess they would be successful under CCAA rather than bankruptsy as it secures jobs! Needless to say this is only possible with the approval of YTG as they would have to agree to a closure as far as liability beyond the bond and a reopening in order to come out from CCAA.
At any rate all is conjecture right now and just my opinion but it is sure looking like the company in its current format will not survive. Look for shareholders to get wiped out if these news releases are any indication. If I was a betting man the stock ceases to trade in the next few weeks!