Great Basin Gold Ltd. (fka GBGLF)

[goldenpolarbear]

In 2012,

Investors are mad with the state of play at Great Basin Gold Ltd., an international gold mining company with mines in Nevada and South Africa that is now in bankruptcy protection.

And there’s a lot at stake given that through RBC Capital Markets, Great Basin raised $57.5-million of equity capital just over six months back from a unit offering at $0.75 per unit. It also raised $86.3-million of equity — at $2.55 a share — in February 2011. One year back, again through RBC, it raised $126.5-million from the sale of five-year 8% convertible debentures.

And their rage is directly proportional to how fast developments have changed at the company whose shares are listed in Canada, the U.S. and South Africa.

Adding to the frustration is that battles have emerged between classes of security holders brought on by the demands of the providers of debtor in possession financing and the collateral holders of the convertible debentures thought they enjoyed. (One holder said that he expects, at best, to receive $0.25 on the dollar.) And because Great Basin is obligated to pay the legal costs of the lenders and the holders of the convertibles, about $10-million will be drained. Indeed in its latest update, issued one week back, Great Basin said that the DIP loan “remains in technical default.”

http://business.financialpost.com/news/fp-street/the-mess-at-great-basin-gold

https://www.sec.gov/alj/aljdec/2016/id1050jsp.pdf