Hycroft Mining Holding Corp (HYMC)

[Kapersky]

Doc 504 Objection to Debtors Plan

Long time reader, first time poster. Took a position in ANV right before the re-offering earlier this year, have been following this train wreck very closely ever since. Just read the Doc 504 and I like where the EC is going : https://cases.primeclerk.com/alliednevadagold/Home-DownloadPDF?id1=MTMyNDAx&id2=0 .

Moelis & Co's valuation of $360-$510M is of course being strongly questioned given that Hycroft mine has $20.6B in unearthed metals and other undervalued/missing assets. Furthermore the details of Moelis' findings were never provided to the EC for analysis.

This was the highlight of the Doc -- big implications for ANV Management?:

2. The Disclosure Statement Fails To Address Events Leading To ANV’s Bankruptcy.

14. ANV acknowledges that it began discussions with its bondholders about a potential financial restructuring no later than December 2014. Remarkably, that very same month, ANV sold 21.75 million shares of new common stock and accompanying warrants for $1 per share. Just over three months later, when ANV filed for bankruptcy, those new shares had lost nearly all of their value. ANV has identified no material changes in circumstances or unforeseen events that occurred between the stock issuance and the bankruptcy that would explain such a substantial reversal of fortune. And if there was no change of circumstances, was ANV’s management seeking equity investors while knowing the company was preparing a reorganization plan that would eliminate common stock and replace it with highly speculative warrants?

15. This sequence of events raises serious concerns for any shareholder deciding how to vote on a Plan that would continue with current operations and current management. The issues that must be addressed in any disclosure explaining these events include: Was the stock sold in a prearranged transaction and to whom? Were the buyers informed of the company’s plans for a financial restructuring and bankruptcy proceeding? How were the proceeds of the stock issuance used? Did the creditors involved in the early restructuring negotiations contribute to the decision to issue common stock? What explains the change in financial circumstances between December 2014 and March 2015?