Mongolian Mining Corp. (MOGLF)

[Ponch73]

Interesting to note the implicit bet that MMC's creditors are making here.

Debt before restructuring: $750M USD
Debt after restructuring: $620M USD (includes perpetual debt)
Haircut: $(130)M USD
New equity issued to creditors: 1,029.2M shares

$(130)M / 1,029.2M = $0.1263 USD x 7.77 HKD/USD = $0.981 HKD

If my calculations are right, creditors are, in effect, "paying" $0.98 HKD for shares when the stock trades at a quarter of that level.

Essentially, to break even, creditors need the stock to be a 4-bagger from here.

I could live with that. What do we think the odds of that happening are? 10%?

Kind of shows how little leverage the creditors had during the restructuring (pun intended).