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The National Post reported that investors are growing frustrated with Great Basin Gold Ltd. that is currently under bankruptcy protection.
The National Post reported that investors are growing frustrated with Great Basin Gold Ltd. that is currently under bankruptcy protection.
As quoted in the market report:
Adding to the frustration is that battles have emerged between classes of security holders brought on by the demands of the providers of debtor in possession financing and the collateral holders of the convertible debentures thought they enjoyed. (One holder said that he expects, at best, to receive $0.25 on the dollar.) And because Great Basin is obligated to pay the legal costs of the lenders and the holders of the convertibles, about $10-million will be drained. Indeed in its latest update, issued one week back, Great Basin said that the DIP loan “remains in technical default.
