Freeport-McMoRan (FCX)

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There is announced a huge payment of debt what does this mean to you? As debt is paid off so is the collateral released held against the debt. A good portion of that collateral was held in credit “ capital surplus “. The reason for this is that if a share title cant’t be split evenly by reverse splitting a share then the balance of the fractional share is held as credit.

Can all shares be declared as collateral for debt? Well yes they can but to reverse the collateral shares they must first establish a new base line for those shares taken out of circulation.

What happens if the held certificates are distroyed or lost. Because all certificates are registered by the owners social security number or personal tax number pending on your world physical location this will be of little concern long as you file a tax return to your location.

Example if your a United States citizen residing in South Africa and have not filed a United States tax return with an address pertinent information to the cusip number on file with your citizen identification number will be held in trust and you will be charged a administration fee until there is no longer any proceeds of the collateral to forward.


You can roll your proceeds that is based on your book value stated on your quarterly and yearly financials.

If no book value is indicated chances are you lost your collateral.

Collateral proceeds are the lowest ever to date. There set at 2% below banks deposit borrowing costs.

Buyer beware, no what your buying, do your DD ask your self how executive compensation is determined. Is the directors mandate more in line in ensuring that debt is delt with and collateral is returned to shareholders along with any compensation for putting up the collateral.

Any depreciated values on the collateral must be adhered to as well based on the partisapents entry into the contract set up by state and country.

If the company can’t provide this to the collateral holders then the company will default and any debt not covered by the asset valuation will be the responsibility of the equity holders of the collateral.