ARI (Arrium) : At Rock bottom, ore not?

[winner69]

Snoops - what scenarios around banks swapping debt for equity and then hoping like hell.

What would it look like for current shareholders if 1/2 billion was converted? O 1 billion?

[h2so4]

Note that no loans are required to be renegotaited before the financial year starting 1st July 2017.

SNOOPY

Well something has raised the red flag with their bankers. There might be some obscure banking covenant that hasn't been complied with.

[cammo]

Ironically, yesterday I was doing an install at a customer's bach( he lives in aussie and comes here to visit his kids) and found out that he was a mineral mining engineer of considerable vintage (just retired). He had done work in aus, png, south america, all over the place. I asked him about the current situation and he laughed and said that although prices had got a wee bit artificially high prior, they were now far too low and there would be a correction in the next wee while...." its a blip in the radar , itll recorrect itself and everyone will be off again" quoted. He seemed to consider the chinese apart from aus etc.

[Fisherking]

Ironically, yesterday I was doing an install at a customer's bach( he lives in aussie and comes here to visit his kids) and found out that he was a mineral mining engineer of considerable vintage (just retired). He had done work in aus, png, south america, all over the place. I asked him about the current situation and he laughed and said that although prices had got a wee bit artificially high prior, they were now far too low and there would be a correction in the next wee while...." its a blip in the radar , itll recorrect itself and everyone will be off again" quoted. He seemed to consider the chinese apart from aus etc.

Interesting comment. IO has been gaining for a couple of weeks now. There is comment it will go over $50. I own a few BCI, this price movement has pushed their price up ~40% so far.

[Snoopy]

Snoops - what scenarios around banks swapping debt for equity and then hoping like hell.

What would it look like for current shareholders if 1/2 billion was converted? O 1 billion?

I guess it will depend on the price of the equity conversion Winner.

There are 2,937,293,755 shares on issue. If half a billion in loan capital was converted at 1cps

500,000,000/0.01= 50,000,000,000 new shares issued.

So total number of shares on issue would rise to 52,937,293,755 shares, and would leave 5.5% of the company in the hands of existing shareholders and 94.5% of shares controlled by the banks. IOW close to 95% of sharehodler value is lost to existing shareholders under this scenario. Not pretty. But debt would shrink from $2billion to $1.5 billion.

If 100 million of debt was converted to equity at 1cps

Then

100,000,000/0.1= 10,000,000,000 of new shares are issued.

Total shares on issue climb to

12,937,293,755

In this scenario shareholders lose 70% of the value of the company to the banks. And debt goes down from $2billion to $1.9 billion.

Just as well that Arrium are still in control of this process. The above banker imposed scenarios look pretty unpalatable.

SNOOPY

[Joshuatree]

Promising

Read more »

[Joshuatree]

Recapitalisation plan

PDF

[Joshuatree]

Download Document Allan gray dumped the lot i think 320 mill shares and that dumped the s/p too. What an unmitigated disaster atp. Dilution and large loan fees as well.
Get to keep the Jewell, Molycop.

[winner69]

Recapitalisation plan

PDF

Jeez - that company makes heap - looks a good investment

[h2so4]

Download Document Allan gray dumped the lot i think 320 mill shares and that dumped the s/p too. What an unmitigated disaster atp. Dilution and large loan fees as well.
Get to keep the Jewell, Molycop.

Guess it was that or bankruptcy.