Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

POR denied?

I do not see how the POR could be denied. There is not enough cash to pay off the DIP or the unsecured debt. Even the Swap contract and DIP financing has to take most of their repayment in the form of a new loan in NewCo. Usually the DIP financing gets paid in full when a company exists Chapter 11, here they are going to have to wait to get paid off in full.

The sale of the $17.5 million in assets is already done and over with. Without that money, the company can't do its reorganization plan because it needs $25 million in cash for the plan. I assume the problem is that the swap and DIP will not agree to a POR with a loan in NewCo unless there is enough cash to run NewCo.

Louis J. Desy Jr.