accesing hawsons through a silver gate., page-61

lldsrud

What I was suggesting is that a Liquidator has no obligation to sell immediately unless they get a reasonable price. What normally happens is that the assets falls in value when a liquidator take control but in this case the value of BMG stake one could argue is increasing due to CAP activities and actually could increase a lot more if they sit and do nothing.

Just because a companies goes into liquidation does not mean that assets are then sold for peanuts. The liquidator has some obligations.


Cap were advertising previously that a third party could buy BMG stake for $13m but no bono fides party has surfaced after all this time.

I understand that Cap cannot bid in their own right unless they pay the "market price" and I think that in the court records ASI said that market price for BMG stake was $60m. The judge ordered the Liquidation of BMG because ASI evidence was that they did not have this amount of money available to them.

Cap does not have anything like this amount available to it either without involving themselves in a massive rights issue.

Apparently Cap have the right for 45 days only to match any final bid that is made for BMG 40% stake. But CAP have no money available to match any substantive bid and 45 days would be a very short time to raise the extra millions that maybe needed to exercise that right even if the figure was $13m.

Cap may end up with a new JV partner via the BMG who would have 40% and CAP 60%.

CAP would have to match 60% of all funds needed for the BFS which which at time they don't have. Even if CAP end up with 100% of Hawsons how will they fund it.

I am not sure that ASI has any money left either.

Nothing is coming out of china now until the new leadership team settle in. That could take 6 months. Whatever happen CAP will have to continue as they are now and try to fund Hawsons except they have only very limited funds at this time.