Katanga Mining Ltd Ord KATFF

Several Options for KAT to Solve The Issue - Easy

[Sogosohubidu201]

So there are three options to solve the issue. Options (1) and (2) had been mentioned in Katanga Mining's PR:

 

(1) Katanga Mining to forgive a portion of debts owed by KCC, e.g. $4.2 billion dollars.
(2) Katanga Mining to convert a portion of debt owed by KCC to equity, if so, Katanga ownship of 75% in KCC will be increased while Gecamines ownship of 25% in KCC will be reduced.
(3) Katanga to talk to Gecamines to delay the timeline to require for the fix of KCC under capitalization.

 

For option (1), Katanga can fix the problem by it alone without working with Gecamines. Just tell the Court and it is done. Easy. This is the most likely option. Zero chance for dissolution of KCC.

 

For option (2) and (3), Katanga will need to work with Gecamines to find a mutually agreeable solution. Katanga/Glencore has been trying and continuea trying these options now. But I don't think that Gecamines will give in. Gecamines will use this opportunity to force Katanga to cancel a portion of KCC debt that it owns 25%. 

24 Apr 2018, 04:35 PM  Edit/Delete

 

[topdop]

Sogo... cheers for outlining those Options. The reason I started my Seeking Alpha KAT Blog last year was because of my dissatisfaction at that company's somewhat tardy, lackadaisical disclosure; I felt, and the OSC apparently do/did too, that it was a company being run by Glencore as if it were simply a small wholely owned subsidiary and to hell with Minority Shareholders' rights. All that

[Sogosohubidu201]

Thanks for your very valuable comments and suggestions. With Glencore controls 86% KAT, not sure how much room KAT has to explore other possibilities. But I think that KAT can easily fix the issue as indicated in the PR.