"This is probably the most abysmal thing I've ever read on Seeking Alpha, and that's saying a bit. The substance of it is: former shareholders of Allied Nevada are pleading with the SEC to provide reparations for their having made ill-timed investments in a speculative business. I'm neither proud nor happy to say I was one of those investors. But this screed displays an extraordinary ignorance of the bankruptcy process, as well as obliviousness to the effect on asset values of dramatic changes in metals prices. ANV's shares collapsed from more than $44 in the late summer of 2011 to less than a dollar at the end of 2014, not long before the bankruptcy filing. In that time the gold price fell from about $1,900 to under $1,200. Operating margins at ANV fell from more than $800 per ounce produced in 2012 to less than $300. Debt rose as they tried to upgrade operations. The company went from having about $40 million in debt in 2011 to $540 million at the end of 2014. By the end of 2014, the interest cost alone had ballooned to $40 million annually. Unable to operate profitably the company became owned by its creditors, as usually happens. The warrants were a gift. As other classes were impaired, the old equity could have received zero recovery. All these unhappy details are still available at SEC Edgar." - John C. Boland
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