https://rochebay.com/update-from-roche-bay-plc-to-our-stakeholders/
Our joint venture with Advanced Explorations is being buffeted by the industry-wide turmoil. While AEI has raised and invested more than $50 million in the Roche Bay project, its most recent financial statements show AEI has $15 million in liabilities and limited cash on hand. AEI has been delinquent on a certain portion of its calendar 2013 payment obligations to Roche Bay, on and off, since June 2014. In addition, AEI has not yet made its payment obligation to Roche Bay for calendar year 2014. At this point, AEI owes approximately $1.4 million to Roche Bay. We have been trying to work with them to figure out a mutually acceptable path forward, and we intend to continue to do so.
However, we are only one of several creditors, and we are not the largest creditor, which normally leads in any corporate refinancing. A collective group of several corporate, institutional, and individual investors based in China and Hong Kong hold significant equity ownership in AEI, in addition to $10 million of debentures. Any process for the financial revitalization and payment of default obligations that will occur with AEI must start and end with these Chinese and Hong Kong investors.
We have not had any direct contact with the debenture holders or the Chinese and Hong Kong equity investors. Consequently, we at Roche Bay have no knowledge of their plans. We do not believe that the group(s) who bought the assets will be the same individuals who decide what to do with them. We expect that the various creditors and investors may choose to transfer these assets internally to maximize their option/strategic value.