Wednesday, September 20, 2006

Update from Croesus Administrators

Croesus Mining's administrators have provided an update on the state of negotiations to either sell Croesus' assets or recapitalize the company. In the latter case, the suspension of trading in Croesus' shares may be lifted. I guess that there is a 50/50 chance that my shares could be worth say 2 Aussie cents each (vs. 27.5 when the trading halt was called) or zero if the assets are sold. The latter would probably mean that there was only sufficient capital to partly pay the creditors (Mitsui Bank and Macquarie Bank are the main ones). Macquarie Bank has been really great through this whole process. Mitsui are the villains. I couldn't link the announcement but it gives a schedule for their meetings with interested parties and for due diligence to be carried out.

PS: 22 September - received a letter today from a fellow shareholder and her lawyers... the lawsuits over the Croesus debacle are beginning to fly. They want $A550 to represent each shareholder without even explaining what their strategy is apart from stating that we should have the same rights as creditors.

No comments: