I would raise some savage criticisms against both capitalism and...

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croasian

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11/12/16

11:10

Post #: 21254093
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Originally posted by danginvestor ↑

I know, people are out there for their own interest. I mean, capitalists are a bit nicer but yea, we're human too

Serious note, I meant to say that it is to the large shareholders interest to bail out MRM with a minor loan and generous terms to them. So for example, get a decent, say 8% interest... with option to convert to equity at x price in the future.

That would avoid a massive dilution, good for their own holdings with or without convertion. And good return on whatever amount they're lending at the moment.

Buffett and others have done this kind of capital injection when the business is in distress.

So while a complete and democratic equity raising is possible, the options available to MRM is not just to either raise equity or go broke.

And this is assuming that there's little operating cash coming in since June 30th, and assuming that no other income and no debt collection, no boat sales all through the next FY17 that they cannot repay the principal and other obligations.

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I would raise some savage criticisms against both capitalism and socialism but this is not the forum.
90m is due over the next year, the forecast is 25m EBITDA for the full year - pre one offs. There's no assurance of cashflow from operations.
So the options are trade through (seems unlikely) vessel sales, capital raising (most likely) or insolvency.

MRM Price at posting: 27.0¢ Sentiment: None Disclosure: Not Held
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I would raise some savage criticisms against both capitalism and...

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