Q1 Why does board think transaction in best interests of shareholders RK Tier 1, double reserves to 30 years. export to india also view on trading conditions RK worst commodity cycle, energy market chaged dramatically. Tough 2015, slow recovery 2016. Investors neee to understand downturn; new world coal, etc. down 90% lack of interest in assets until tier 1 attainment. unlikely to meet debt repayments. Q2 WHAT CURRENT DEBT WHO HOLDS IT nd what rights went through usual debt plus unsecured : voting no senior debt ahead of uk shareholders default destroys company value. Q3 current cash when run out of money 800,000us at 1st dec funding alive till end of first qtr 2015 Q4 share price drop 90 drop coal prices 70-80 impact on valuation of assets. attribute reasons: arch coal in us ecactly same position: conclude market is main reason for value Q5 WHAT OTHER OPTIONS? commercial banks withdrawn from junior sector due to no cashflow local operators large and junior chinese and indian no serious interest in tier 2 asset. would insist be sold had there been Q6 what happens no resolutions cannot continue not service debts from vitol or beforehand by board before year end Q7 ASSET VALUE 55 MILLION US? not true. rio tinto asset buyers market value forced sale nowhere near any return for shareholders 25m debt, govt, local employees then debtholders then plc shareholders. no bid out there. RK FIRE SALE CREDITORS ONLY. assumptions on valuations is as going concern. NAV 60.2-8.7 = 51.5million Q8 % OF RESOLUTIONS COMMENCEMENT 10P 1:1000 CONSOLIDATION Q9 salaries of directors Justin 400,000 us invested RENTED REGIS OFFICE IN SA Q10 PAY CUT? LOWEST QRTILE OF PAY, HAVE TAKEN OPTIONS IN LUIE OF MONEY.
I registered this question this am: Please can you ask the Board of Directors whether they already negotiated, or commissioned anyone else to negotiate a pre-packed administration should the company not be successful in passing all resolutions at the forthcoming EGM.