Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

DIP and Swap contract being repaid with new debt

As an indication of how bad off the company is, the DIP financing is proposed to be 'paid' with a first lien loan on NewCo. i.e. The DIP financing is not going to be paid off with cash at the end of the Chapter 11, a large block of the DIP financing is being converted into first in line loan on NewCo.

If there was real value here, the company would have been able to raise cash by selling off some of the mining rights and repay the DIP with cash, not exchange it for a new loan.

The swap contract is in the same situation, they are not getting paid off with cash, they are getting a new loan on NewCo.

Louis J. Desy Jr.