Post by
Oregonduck on Jul 08, 2024 3:28pm
My prediction the banks will seize on their security
There is a Right to Offset under the Bank Act. As of Dec 31, 2023, VGCX had $15 million cash (est $40 million currently), the syndicate banks could grab all the cash in the accounts to pay down the $200 million loans. Under the loan agreements, the Co, has provided a General Security Agreement over all fixed and floating assets including $176 million of gold inventory. There are also cross defaults built into the syndicate loans agreement. It looks like the banks could get out of this mess by seizing on their assets. They could put the Co into bankruptcy under the Bankruptcy and Insolvency Act. The Co could beat them to it by voluntarily filing under CCAA protection to buy time. In any case, the shares likely would go to zero.
Comment by
Singoa58 on Jul 08, 2024 3:57pm
Great news.. responsible mining needs to be inforced... retail investors took it up the ____ per usaul lol