Post by
Oregonduck on Jul 09, 2024 1:07pm
Canadian banks don’t lose money
They are like pawn brokers. VGCX owes $200 million secured by fixed and floating charges on all assets including cash on hand of $40 million, $170 million worth of gold inventory and other equipment. The syndicate of bank loans have cross-default and repayment acceleration clauses in the event of breach in loan covenants. They can petition the Co into bankruptcy under the BIA proceedings. I also doubt that FNNND will allow the gold mining at Eagle to restart in a year or more. What would happen to VGCX with no cash flow to pay the banks?
Comment by
givemeabreak1 on Jul 09, 2024 1:43pm
DUCK Where do you get the 170 million in gold inventory on hand. If I understand it correctly much of the gold inventory for example ore being leached and ore that was stacked washed away in the slide.
Comment by
Zibo510 on Jul 09, 2024 2:05pm
Not sure, but if the lender's have as part of their security registered against the loans, 170 million of gold production, that lein may be enforceable even if ownership is transferred. Like I said I don't know, but it wouldn't surprise me.