Because the secured 2009 and 2016 bonds are indicating there is money to pay them off. But CEMJQ is not generating nowhere near the profits to pay those bonds now.
So where is the money coming from?????
No asset sales have been announced - yet. They MAY announce it in the POR.
Rogerson has indicated they may keep the company as a whole without asset sale.
So again, where is the money coming from????
Refinance, possibly, debt won't go away but they'll get breathing room, but creditors will have to sign off on assumption CEMJQ will generate enough profits in future to finance debt, a big if.
Is the money coming from a debt for equity swap then??? In that case common will be canceled or very, very heavily diluted. What spooked MC was the company's own attorney saying there is no value for shareholder equity, meaning cancellation of existing common.
We'll know for sure with the POR. It's like an earnings date, place your bets.
