FGE have gained nearly 20% today. I wonder why the sudden rise?
Shares in Forge Group have soared more than 20 per cent as WA contractors join parties having a look at its books as the engineering company seeks a more lasting fix for huge project losses.
ANZ pull the pin, sad day, fire sale or bankrupt or corner investor at massive discount no win for shareholder in any scenario.
2008-2010
Former Independent Non-Executive Director, Chairman of Audit Committee, Member of Nomination Committee and Member of Remuneration Committee
ADG Global Supply Limited
2008-2010
Former Non Executive Director and Chairman of Audit & Risk Management Committee
Entek Energy Limited
2008-Present
Non-Executive Director and Chairman of Audit Committee
United Minerals Corporation NL
2009-2013
Former Independent Non-Executive Director, Chairman of Audit & Risk Management Committee, Chairman of Remuneration Committee and Member of Disclosure Committee
Moly Mines Ltd.
2009-2013
Former Independent Non Executive Chairman and Member of Audit Committee
Southern Hemisphere Mining Limited
2010-2012
Former Consultant, Non-Executive Director, Chairman of Audit & Risk Management Committee and Member of Nomination & Remuneration Committee
Nomad Building Solutions Limited
2011-Present
Non-Executive Chairman
Gunson Resources Ltd.
2011-Present
Independent Non Executive Chairman, Chairman of Nomination Committee, Chairman of Defence Committee and Member of Health, Safety & Environment Committee
Forge Group Limited
2013-Present
Non-Executive Director, Chairman of Audit & Risk Committee and Member of Remuneration & Nomination Committee
Sirius Resources NL
ANZ pull the pin, sad day, fire sale or bankrupt or corner investor at massive discount no win for shareholder in any scenario.
I imagine the stocks are worth nothing now?
Or will they just be worth a very low amount?
Or would a shareholder go on a creditor list?
Totally new at this and have no idea what would happen.
ANZ pull the pin, sad day, fire sale or bankrupt or corner investor at massive discount no win for shareholder in any scenario.
The warrant has a cash equivalent term which is basically an execution clause as the company could never meet the call. The bank could utilise this at any stage to maximise their windup distribution, but would not be in their interest to use it a point that left equity with anything.
Best case scenario for shareholders is that the execution clause has been exercised because there is an offer on the table that management doesn't want to take but ANZ thinks they should. If there is no offer then ANZ will put them into receivership to protect its priority claims. Can't imagine there would be anything left for shareholders out of that process.
You don't know until Thursday when the announce to the market their position ...but nothing good would come out of this .. These are possible scenario.
1. Bank pull their support and demand their debt back, FGE don't have the cash they are insolvent and their asset belongs to the banks, administrator call in, fire sale start...nothing will be left for holder...
2. They find a buyer for the business and the new owner wish to take on all the liability including the bank debt, how much they pay no idea
3. Sell off their asset or exchange their big contracts with some other company for some cash and pay back the bank debt, do they have anything to sell that worth 50-100m?
4. Recap, need to find a white knight who willing to inject money that satisfied FGE bankers and carry on...
This won't come cheap as FGE is on 000 emergency bed, they demand large discount and that dilute most current holders value..
When it comes to this shareholder usually get little value out of it....you are the last in line ....
Where did you read about that?
I'm just saying that it would be the best case scenario as an explanation to why ANZ have moved now.
ANZ have put themselves firmly in control - if its not to force acceptance of some offer then its to protect their claims via receivership.
I have no idea if there actually is any offer.
So...who's next?
There's a whole bunch of small mining services companies that are surely only a few ham sandwiches away from being the next FGE.
As one of the commentariat pointed out when news emerged that companies like Monadelphous and other mining service providers were going through FGE's data room, they were almost certainly doing due diligence on FGE's numbers when the tenders awarded to FGE come back onto the market because FGE can't do the job any more.
I highly doubt that any peer/competitor to FGE would be interested in purchasing FGE. They would rather see the company go into insolvency and then cherry pick the best assets, use their intelligence from going through FGE's data room to cherry pick the best contracts and away they go.
I don't see a white knight coming to the rescue.
I don't hold FGE, but I do hold MND.
I'm just saying that it would be the best case scenario as an explanation to why ANZ have moved now.
ANZ have put themselves firmly in control - if its not to force acceptance of some offer then its to protect their claims via receivership.
I have no idea if there actually is any offer.
As one of the commentariat pointed out when news emerged that companies like Monadelphous and other mining service providers were going through FGE's data room, they were almost certainly doing due diligence on FGE's numbers when the tenders awarded to FGE come back onto the market because FGE can't do the job any more.
I highly doubt that any peer/competitor to FGE would be interested in purchasing FGE. They would rather see the company go into insolvency and then cherry pick the best assets, use their intelligence from going through FGE's data room to cherry pick the best contracts and away they go.
I don't see a white knight coming to the rescue.
I don't hold FGE, but I do hold MND.
I'm just saying that it would be the best case scenario as an explanation to why ANZ have moved now.
ANZ have put themselves firmly in control - if its not to force acceptance of some offer then its to protect their claims via receivership.
I have no idea if there actually is any offer.
As one of the commentariat pointed out when news emerged that companies like Monadelphous and other mining service providers were going through FGE's data room, they were almost certainly doing due diligence on FGE's numbers when the tenders awarded to FGE come back onto the market because FGE can't do the job any more.
I highly doubt that any peer/competitor to FGE would be interested in purchasing FGE. They would rather see the company go into insolvency and then cherry pick the best assets, use their intelligence from going through FGE's data room to cherry pick the best contracts and away they go.
I don't see a white knight coming to the rescue.
I don't hold FGE, but I do hold MND.
I'm just saying that it would be the best case scenario as an explanation to why ANZ have moved now.
ANZ have put themselves firmly in control - if its not to force acceptance of some offer then its to protect their claims via receivership.
I have no idea if there actually is any offer.
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