Last time KZL tried to sell its asset Lizard Lounge it got like 20% of what it thought the asset is really worth.
Firesale of assets will be lucky to yield 50% of its "book value". Also once the assets goes on sale trust me that shareholder value will be at the bottom of the preference list. If there is a firesale the most likely thing to happen is that the buyer just needs to purchase the debt. Then force KZL to go into administration and take the asset. Shareholders left with nothing. All the asset equity valuation in a desperate situation is thrown out the window.
The longer the suspension remains the more dire the situation.
I do have a hunch that KZL won't go bankrupt this time. How much more time it can buy ... well I am not going to guess.
To me the people that I feel most for are those that have their livelihood directly tied into KZL which are the employees and contractors (especially those with families and a mortgage).
The last company that ended up in the dumps I remember was CopperCo during the GFC. Was then sold to Cape Lambert Iron Ore (CFE). I remember that CFE just purchased the debt from Macquarie Bank. I believe they paid like 40c in the dollar as well.
Hoping that a good outcome can come out of this latest event. Even if this means that KZL relists from its suspension.
I can see another company that is also heading in KZL direction is Platinum Australia (PLA) but this is a different kettle of fish.
Good Luck to all holders that something positive can happen.
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
