Generally when a company goes into VA it is because the management have given up under a mountain of debt and need either time(from banks) or money to recover, in short the company is severly financially stressed.. In most cases the company is wound up(liquidated) and shareholders are the last on a long list of creditors to be paid out, often only receiving XX cents in the dollar. Sometimes a company can be resurrected and then it is placed in a deed of company arrangement(DOCA) and is then recapitalised but often in this case the companys capital is consolidated and new funds raised and often original shareholders lose out big time. All in all VA never augers well for shareholders.But in a very small number of cases a company can come out of VA unscathed but given this is Kagara and they have had financial problems and operational problems for some time now, it would tend to indicate a unsuccessful outcome unfortunately.ducks
KZL Price at posting:
12.0¢ Sentiment: ST Sell Disclosure: Held