Australian (ASX) Stock Market Forum

VRE - View Resources

Jump to new
robot said:
Announced today IMC to put up $19million Loan to assist restructure of company. Investec debt to be paid out with balance of loan to fund Carnilya Hill development calls. Restructure must be approved by stakeholders and subject to due dilligence.

Very encouraging "white knight" action by IMC and will surely save View Resources. Loan will get View through hiatus until Carnilya Hill starts generating positive cash flow.

Most importantly it takes Investec off the scene totally. They were only interested in selling assets off to get their money back.

IMC could become the majority shareholder after restructure you would anticipate. This also would be good for the share price post return to trading with such backing from the Australian arm of this cashed up Asian corporate giant.

IMC are showing a lot of faith in Carnilya Hill primarily but they would still see a future for the Bronzewing gold mine tenement area as well.:)
Click to expand...

More on this here:

http://www.wabusinessnews.com.au/en-story/1/61379/IMC-gives-View-Resources-a-19m-lifeline

One wonders whether minor shareholders will be included in the "restructure" or will be wiped clean from the slate?

Hmmmm. My arthritic crossed fingers aren't twinging so bad at the moment - but they've fooled me before.....

Important to note:

"Ms Baker said IMC may immediately demand repayment of the loan should a satisfactory due diligence or restructuring not be achieved. Any proposed restructure will require the support of View's stakeholders".

Let's hope the due diligence IS satisfatory this time and that the stakeholders support the rescue scheme!!

AJ
 
Any life line is helpful
After looking at the ferrier hodgson website this was actually announced on the 7/3 so it's good to see there is a chance to see it relisted ;: ":cautious:I HOPE"

1.
EXECUTIVE SUMMARY
Andrew Saker and Darren Weaver were appointed as Joint and Several Administrators of View Gold Pty Ltd (“View Gold”) on Friday, 8 February 2008, pursuant to Section 436A of the Corporations Act (“the Act”).
Furthermore, Andrew Saker and Darren Weaver were also appointed as Joint and Several Administrators to View Gold’s parent entity View Resources Ltd (“View Resources”) and its related entity View Nickel Pty Ltd (“View Nickel”) on Friday, 8 February 2008, pursuant to Section 436A of the Act. For the purposes of this report, View Gold, View Resources and View Nickel are collectively referred to as “the Group”.
Creditors ratified our appointment as Joint and Several Administrators of the Group at the first meeting of creditors held on Wednesday, 20 February 2008. A Committee of Creditors was formed for View Gold and View Resources. Given the composition of View Nickel’s creditors and its relationship with View Resources, creditors decided that no Committee would be formed for View Nickel.
Immediately following our appointment, we took control of the Group’s assets including View Gold’s assets and continued to carry on the Group’s business.
On Tuesday, 19 February 2008 the secured creditors Investec Bank (Australia) Limited (“IBAL”) and Investec Bank (UK) Limited (“IBUK”) exercised their rights to appoint Receivers and Managers over the entities View Resources and View Nickel. However, View Gold’s operations and assets were left under the control of the Administrators.
Following the appointment of Receivers and Managers to View Resources and View Nickel on Tuesday, 19 February 2008 and following the Joint and Several Administrators’ thorough assessment of the Group’s trading forecasts moving forward, the operations at View Gold’s Bronzewing Minesite were placed on care and maintenance by the Administrators.
Furthermore, after a meeting of View Resources’ Committee of Creditors and approval from the Committee on Wednesday, 27 February 2008, the Administrators of View Nickel signed a term sheet with a subsidiary of IMC Resources (Australia) Pty Ltd (“IMC”), Austral-Asia Resources and Infrastructural Investments Pty Ltd (“AARI”) to refinance the debts due to IBAL and IBUK and fund future cash calls in relation to the Carnilya Hill Joint Venture. The funding is subject to a number of conditions precedent including a due diligence review in relation to View Nickel’s interest in the Carnilya Hill Joint Venture. Documentation in relation to the funding is currently being negotiated. At present the funding has not been drawn down.
The second meeting of creditors of View Gold has been convened for Monday, 17 March 2008 and will be held at the Kings Hotel, 517 Hay Street (corner of Hay and Pier Streets), Perth, Western Australia at 2.30pm WST.
The Administrators are currently seeking expressions of interest for the purchase of View Gold’s assets and are also seeking expressions of interest for the possible restructure and recapitalisation of the Group. The Receivers and Managers are also currently seeking expressions of interest for the sale of View Nickel’s assets.
Page 6
 
Here's hoping - can anyone shed light on the probability of existing shareholders retaining their stake in this? It's just that I was in a similar situation with Tassal a few years back and "recapitalisation" sounds nastily like "ditch all the existing holders and get us some new ones" :eek:
 
Receivers and managers sent in by Investec now removed from VRE. VRE control now back in the hands on the board appointed administrators.
 
The Ferret said:
Receivers and managers sent in by Investec now removed from VRE. VRE control now back in the hands on the board appointed administrators.
Click to expand...

Yup. A small step in the right direction?

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00823012

I also noted that the reporter in the WA article stated:

"Receivers appointed by Investec to View Nickel recently advertised for expressions of interest in the Carnilya Hill stake. However, it is understood that if Investec’s debts are cleared the receivers will be withdrawn from the group".

So, although no announcement has been made to the effect that Investec's debts HAVE been cleared, I wonder if that has actually transpired? Standby for further announcements I guess.
 
Aussiejeff said:
Yup. A small step in the right direction?
Click to expand...

Better than nothing thats for sure. Good news for shareholders... I hold options.. so, my money is gone.

Only hope for options holders is that IMC also holds a sh*tload. Hoping VRE may offer option holders new ones based on current holdings at a discount or something... but not holding my breath.
 
The Ferret said:
Better than nothing thats for sure. Good news for shareholders... I hold options.. so, my money is gone.

Only hope for options holders is that IMC also holds a sh*tload. Hoping VRE may offer option holders new ones based on current holdings at a discount or something... but not holding my breath.
Click to expand...

Fingers x'ed for yer, Ferret....

I (embarassingly) hold shares rather than options ($60,000 worth to my chagrin, bought rather too impetuously after their final *good* report - just before the trading halt and subsequent shyte hit the fan a few days later!)

So, to see even a glimmer of hope at this stage is - ummm, ever-so-slightly uplifting after the past few weeks of having resigned myself to total loss. Getting ANYTHING back out of this fiasco after resigning oneself to a total loss would be like having a win on Lotto! I'd be happy with 1%. Anymore than that will be a bonus...

Good luck, shareholders... everything still x-ed.....


AJ
 
Mate, $60000! I feel for you - I too bought in just after latest "good news" release and just before the .... hit the fan :banghead: but only $7000. Let's all hope that we can get something worthwhile out of it.
 
hahahaha.. its like that last release of "good news" as we are all calling it was a striking bit of bait that not too many of us could have refused... I too doubled up after that last release of news... also highlights how misled we all were by the "PREVIOUS" management... feels good to say previous management - hopefully all of them still have some questions to answer...

I have a much wiser colleague here at work who says that i should of waited for a full quarter of "good results" before jumping in again.. but hey - it is a speccie, i knew the history and the risk.. i guess you cant win them all...

All this makes you wonder why IMC didnt just take over the debt in the first place... perhaps an instituitional placement???
 
IMC did not want to rescue the existing company structure and management.

If you remember IMCs representatives on the board (Jyn Sim Baker and Gerrit de Nys) had to stand down in October because of conflict of interest on the $10.6m capital raising. You might note they were never reinstated therefore had no say in the critical events and announcements leading up to administration. IMC actually called in Ferrier Hodgson for an urgent review of the financial situation just before Christmas. The report raised cause for alarm. Combined with the proposed sale of Carnilya Hill IMC forced the remaining directors to call in Ferrier Hodgson as Administrators. This would have been under threat of disclosing insolvent trading during January and particularly after January 31st of January.

If IMC just propped up the existing management / Board and working capital (again) Carnilya Hill would have been sold and with Bronzewing failing to meet expectations it would have possibly been just a short term fix again.

IMC and the Administrators will now restructure and recapitalise View Resources with IMC having a controlling interest on the Board.

It will be very interesting to see if IMC want to hang onto Bronzewing (and explore and develop the area) or sell it off to settle debts. Given the current Gold price, they may get a suprisingly good price for the existing infrastucture, mines and tenements (even though Gooch and Co mucked it up). View paid $9 million for it after Newmont bailed out when the gold margin made it unprofitable. Costs of infrastructure and exploration and development have risen sharply but the gold price has doubled also.

IMC could then choose to focus just on the potentially very profitable 30% interest in Carnilya Hill.
 
MS+Tradesim said:
Report by the administrators. Worth a read:

http://www.ferrierhodgson.com.au/download.cfm?section=case_profile&objectID=4236
Click to expand...


Thanks for that! The following extract is pretty telling.

------------------------------

"Andrew Saker and Darren Weaver first provided verbal solvency advice to the Group at a meeting held on 10 December 2007. Following this meeting Ferrier Hodgson were approached on 11 December 2007 by the major shareholder of View Resources, IMC to complete a high level business review and were formally engaged to undertake this task on 18 December 2007. The high level business review report was completed on 27 December 2007 for use by IMC.

After recent production results had been prepared and after Board discussions regarding the proposed sale with Mincor, the Group sought additional verbal solvency advice from Andrew Saker and Darren Weaver on 6 February 2008. The financial position of the Group was also discussed with the major secured creditor.

In view of the Group’s current financial position, the directors’ view that the Group was likely to be or become insolvent shortly and the directors resolved to appoint Administrators to the Group. On Friday, 8 February 2008, Andrew Saker and Darren Weaver were appointed as Joint and Several Administrators of View Resources, View Gold and View Nickel."

-------------------------

These bas#%^&* knew the potential insolvency situation all along - from 10th December infact - yet the company's only major announcement after that date (there were none in Dec) was on 10th Jan - a *glowing* upbeat report exclaiming "Bronzewing produces 45% more gold for December quarter!". NOWHERE in that announcement is there the slightest hint of impending financial problems or production problems.

If ASIC don't stomp on Gooch and Co. the system and disclosure laws sux. These morons shouldn't be allowed to get away with what they have so blatantly and PURPOSELY kept hidden from public shareholders. The circumstances were NOT unforeseen - at least by them.

Grrrrr.....

:(

AJ
 
Aussiejeff said:
Thanks for that! The following extract is pretty telling.

------------------------------

"Andrew Saker and Darren Weaver first provided verbal solvency advice to the Group at a meeting held on 10 December 2007. Following this meeting Ferrier Hodgson were approached on 11 December 2007 by the major shareholder of View Resources, IMC to complete a high level business review and were formally engaged to undertake this task on 18 December 2007. The high level business review report was completed on 27 December 2007 for use by IMC.

After recent production results had been prepared and after Board discussions regarding the proposed sale with Mincor, the Group sought additional verbal solvency advice from Andrew Saker and Darren Weaver on 6 February 2008. The financial position of the Group was also discussed with the major secured creditor.

In view of the Group’s current financial position, the directors’ view that the Group was likely to be or become insolvent shortly and the directors resolved to appoint Administrators to the Group. On Friday, 8 February 2008, Andrew Saker and Darren Weaver were appointed as Joint and Several Administrators of View Resources, View Gold and View Nickel."

-------------------------

These bas#%^&* knew the potential insolvency situation all along - from 10th December infact - yet the company's only major announcement after that date (there were none in Dec) was on 10th Jan - a *glowing* upbeat report exclaiming "Bronzewing produces 45% more gold for December quarter!". NOWHERE in that announcement is there the slightest hint of impending financial problems or production problems.

If ASIC don't stomp on Gooch and Co. the system and disclosure laws sux. These morons shouldn't be allowed to get away with what they have so blatantly and PURPOSELY kept hidden from public shareholders. The circumstances were NOT unforeseen - at least by them.

Grrrrr.....

:(

AJ
Click to expand...

Jeff, methinks you and other shareholders should lodge formal complaints to ASIC along the lines of your post here - you can download a formal complaint form from the internet or they will mail one to you.

totally agree they should not be allowed to escape their obligations
 
Does anybody know if the 2nd creditors' meeting is going ahead today and if this will be adjourned or whether any substantive information may be expected thereafter?
 
Thanks; I had received the same information, plus confirmation that the gold operations remained suspended in spite of the rise in the gold price to US$1030. Surely, the grades must be profitable at that price!
 
Not profitable if there is not actually anything there.

From what I have heard that wouldn't surprise me ;)
 

Similar threads

Dona Ferentes
PBL - Parabellum Resources
Replies
1
Views
1K
Dona Ferentes
Dona Ferentes
Ann
ODE - Odessa Minerals
5 6 7
Replies
130
Views
31K
Dona Ferentes
Dona Ferentes
Ann
FSG - Field Solutions Holdings
2
Replies
31
Views
15K
Dona Ferentes
Dona Ferentes
R
The American use of War Pretext Incidents
Replies
6
Views
9K
sptrawler
sptrawler
Top