Katanga Mining Ltd Ord KATFF

Does anyone know ??

[Dkwinnng]

If Glencore holds 86 percent this company do they also own 86 percent of there debt ??

[meteor]

I don’t know but in my opinion the answer is yes Glencore owns 86% of the debt, just as I may own 0.00000001% of the debt too.  My thinking is that Glencore like ourselves are shareholders or if you like owners.  Based on quarterly statements and our percentage of shares owned individually we all reap the good and the bad when the share price goes up or down and one of the many

[patels96]

You both are wrong...GLEN holds 100% of KAT's debt since they own over 50% and can exert significant influence in regards to KAT's operations...in accounting is this know as the acquisition method In addition, since majority of debt was issued by GLEN to KAT this is a shareholder loan which carries more flexibility then a traditional loan from financial institutions Best, Katanga

[Dkwinnng]

So with Glencore investing 5 billion to restructure and drop production rates could they have also paid there debts ?? I’m just trying to grasp the reasoning behind finiantials for the last couple years. Glencore has been part of this company for years so they probably already had there advisors watching over the financials. Could it be they were stock piling both cobalt and copper till they hit

[Stevercan]

I highly doubt stockpiles.  Everything is hedged.  Nothing is sold on the spot market by large players.

[Stevercan]

The debt would be owned by glencore with the KAT assets/revenue as collateral.  Glencore could at any time call the debt and force Kat into bankrupcy.  I suggest this will happen for tax writeoffs and they will buy the assets at a far reduced value and own it all.  Why would they not?  They don't need the 13% shareholders.  I suspect someone of importance still owns

[Stevercan]

Said dec 16th.

[Stevercan]

Its best to have the quote from Dec 16th as well.