Cline Mining Corporation T.CMK

An encouraging sign?

[bond46]

The tone of the NR today about hiring a new CFO is a bit encouraging. The fact that the new management addresses the shareholders in itself is encouraging that they are not planning of sending Cline to the dumps, instead they are planning of "rebuilding" it. The fact that the old guard is dispensed with is understandable for who wants to run a company with people who have been associated with the dead meat. The question is now, what kind of deal they are going to strike with the Asset Management Co., Marret, and how dilutive could the arrangement be The new board has imposed a " black out" on info release to the shareholders and they don't even say if the AGM is going ahead as planned. Hope they know what they're doing.

[pastafagoli]

Bond - What you are hoping for here.  Its all over.  Any rebuilding will be post bankrupcy and not accrue to the shareholders.  There is no equity value and they owe marret like 75 million with fees and interest.  I have worked on several bankrupcies and believe me even the secured takes a haircut at times.  The unsecured get 1 cent on the dollar.&

[bond46]

I am aware of the possibility of going into Chapter 11, liquidate the assets and then rebuild. The problem with this solution is that there will be no assets left afterwards to rebuild anything. That is why I rule that out a priori. In other words, if Marret were sure by forcing bankruptcy they would recoup their losses, they would probably force bankruptcy. But in the current market environment

[ark88]

Mr. Bond is right. Cline is insolvent BUT not bankrupt. There is a big difference. If they declared bankrupcy, even Marret may not get all their money. Even worse, Marret would lose control of the situation as all the powers will be vested in the appointed Trustee. In the last six months or so, Marret's has been the one holding the hammer ready to drop. Now, the tables could be turned in

[bond46]

Agree with Ark 88. This is a fair assessment of the situation.

[pastafagoli]

Uh, the trustee is appointed and works for and is paid by the creditors.  Marret will use CCAA and not bankrupcy since their debt is secured.  CCAA will allow them to cancel the expensive port lease they do not need and pile it into a restructuring liability that gets settled at 1 cent on the dollar.  In addition can cancel other leases, fire employees, cancel PO commitments, etc

[ark88]

Didn't understand a word of what you posted.>

[steeler07]

Agree as well -  Apollo global equity has moved into the second round of bidding for the iron company of Canada -  sign that private equity money may be moving back into resource stocks -  lets hope and pray CMK can get an offtake agreement.  That is the key

[jsnfernley]

He said that he is assuming that the CCAA provision of Canadian bankruptcy law will extend to the American subsidiary of a Canadian company.  Somewhat implicit is the assumption that the Canadian parent (T.CMK) guaranteed the bonds that are secured by the American subsidiaries' assets, and that accordingly Marrett will just "own" Cline and can do whatever it wants.

[Eigen337]

This post has been removed in accordance with Community Policy

[bulkbeef]

Quit giving a false sense of hope.  The company is done.  CMK as an investment is over.  It's finished.  Done. 

[wewantprenup]

Is bankruptcy really that encouraging? An offtake agreement? They havent sold an ounce of coal because its garbage. You can literally go down there and just take it because no one wants it. The execs have left out the backdoor. Private equity??? When will you understand its over, when it hits $0.000000????