Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

Why should the existing common shares get anything?

The existing common systematically ran the company into the ground over several quarters, to the point where the unsecured liabilities may end up with zero, and even the DIP financing, which has super priority, may start to have losses. Apparently, the reward the existing common shareholders have in mind for the DIP financing is that they too should suffer a loss from lending money to the company in its hour of need.

The existing common shares are 8th in line for priority in recovery, yet think they deserve to be compensated for allowing this financial disaster to happen?

The debtor can easily make the argument that the existing common shares should be wiped out, and considering that the existing common shares do not appear to want to make any kind of deal that would allow the unsecured liabilities to be paid ahead of them; there is no other option. At best a cramdown for the warrants, and at worst a new plan submitted with the common wiped out, which then will have to be a cram down anyways.



Louis J. Desy Jr.