To perpetuate the fraudulent activity of fat cats?
There have been SEVERAL chances to collect facts and present evidence that happened, but most of you seem to come to conclusions first and then select facts afterwards to conform to how you view reality.
1: The EC had one shareholder who held 500,000 shares. It was through his efforts that the warrant percentage got raised from 10% to 17%, which I consider a miracle since under bankruptcy priority the common shares could have been completely wiped out. In order to believe that there was a conspiracy, you would need to believe that person sacrificed his 500,000 shares in order to allow the theft to happen. Someone should call him up and accuse him of being 'on the take' and see what he thinks of such an absurd charge.
2: Most other resource companies, across a vast range of industries, all have suffered large losses or gone bankruptcy within the past year; but somehow some people here are pushing that Allied Nevada Gold has been 'stolen', even though a number of other companies have all had declines or out and out bankruptcy of the firm. Somehow we are to believe that hedge funds engineered the destruction of a perfectly good company, while everyone else was in decline or imploded.
3: The expert report that Tuttle spent considerable time on was finally released on one of the court filings, and it showed the target price of $0.05/share from back in December 2014. After that came out everyone stopped talking about how the expert report was going to show the company had all kinds of value.
4: The constant harping on about the mine project. People keep going on and on about how there is 'all kinds of valuable gold in the mine' and ignore the 'little problem' that they just need to raise hundreds of millions to finance the project. I am sure that a company that has just run itself completely into the ground would have 'no problem' raising hundreds of millions of dollars after they had trouble raising $20 million in December 2014 in an effort to not run out of cash.
5: The unsecured creditors have lost over 80% of their claims. In order to believe that the company was stolen, the unsecured creditors would have also 'all been in on it' and are instead the new shareholders, with company stock that they can not turn into cash that easy since there is no public market for the stock. Of course, with the operating reports showing the company losing money every month and no more ore being mined, no one may want to buy shares in a mining company that will probably run out of ore to process in 2016, at which point the revenue of the company will drop to zero. Some people 'might not think' that is a good investing opportunity.
6: Things are so bad that shareholders who held on into the conversion may even have trouble recognizing their losses for tax purposes. With no public market for the new warrants, anyone who wants to take the loss in tax year 2015 will have a problem, since unless they somehow arrange a private sale or give them to their brokerage firm, there is no event to allow a person to recognize the tax loss for tax year 2015. As bad as things went, if someone had sold just prior to the effective date, they could at least take the loss on their taxes, but if they held the old shares and got converted into warrants, they still can't claim the loss.
7: The secured debt got stuck with debt in NewCo. Even the DIP financing was not able to get its cash out of the company after the plan was put into effect. Instead, they got stuck with NewCo debt; which I am sure they are thrilled to have since the company appears to still be losing money, and can't mine ore. When the ore runs out in 2016, they will be especially pleased that the DIP financing will take large losses, in spite of the fact that they had a super priority position within the bankruptcy framework.
Louis J. Desy Jr.
