paragraph 7 - "The government must rescue the market, not with empty words, but with real silver and gold," said #$%$ Xuejun, strategist at Huarong Securities Co, before the CSRC and PBOC announcements, adding that a market crash would hurt banks, consumption, companies and even trigger social instability. "It's a disaster. If it's not, what is it?"
The financing also includes as an acknowledged debt a $50 million early payment premium on the loan.
Oaktree would be entitled to "credit-bid" its loans at the auction for Neo, meaning bid by offering to cancel debt, instead of with new money, under the terms of the new proposed loan.
Molycorp owes senior bondholders $650 million. Oaktree is owed about $260 million in loan and lease deals with Molycorp, not including the early payment penalty.
The bankruptcy financing is up for interim approval Thursday in the U.S. Bankruptcy Court in Wilmington, Del.
No final decision on a bankruptcy loan will be made until an official committee is appointed to represent Molycorp's unsecured creditors, including junior bondholders owed about $750 million.
Peg Brickley WSJ
In an about-face, Moly Corp has chosen bankruptcy financing from top-ranking lender Oaktree Capital Group LLCover a competing offer from secured bondholders, setting off a new round of court fights.
Oaktree's proposed loan is linked to the proposed sale of Molycorp's most valuable business, the moneymaking Neo Material Technologies Inc. operations. Bondholders say Molycorp needs to hang onto Neo to remain viable over the long haul. Rare-earths producer Molycorp filed for chapter 11 bankruptcy protection last week, after diving prices for its products made its $1.7 billion debt load unsupportable. A rare-earths production facility in California is losing money, but Neo, which processes the elements for use in high-tech products, is still making money.
Bondholders say the Oaktree financing will end Molycorp's hopes of surviving as a unified company, and lead to a sale designed to hand Neo over to Oaktree.Terms of the Oaktree financing require Molycorp to mothball its money-losing California rare-earths facility, and sell Neo, with Oaktree leading the bidding at an auction in October.The company and its dueling lenders are due in court this morning for a hearing on the proposed Oaktree loan, which could run as high as $292 million.
Molycorp's bankruptcy filing was part of a deal with senior bondholders linked to a $225 million chapter 11 loan, that set the stage for them to take control of the company.Oaktree mounted a successful objection to the bondholder financing, triggering a new round of talks about who would provide the money necessary to get Molycorp through bankruptcy. A new financing deal with Oaktree emerged from the talks, one that means $126 million in fresh cash for Molycorp, and unchallenged primacy for the rest of the company's debt to Oaktree.
A so-called "roll-up," the proposed bankruptcy financing reinstates Oaktree's existing loans as chapter 11 debts, shielding them from creditor challenges.
Criminal action at it's finest. The algo's were set for a 1% gain for gold.
It didn’t take long for The Gold Cartel to step up to the plate. James Mc last evening…
Greek meltdown, Europe in crisis, derivatives implosion= +1% gold
The #$%$ are relentless. Gold should be up $100, not $10. Gold was up 2% a week ago on NO news, now it's only up half that on BIG news.
To the tick
Exactly 1 hour after the Crimex access trade open it's $1184.90, circled number to the exact tick. Precision rigging on the eve of a Greek meltdown.
On June 25, a representative from the Shanghai Gold Exchange announced that they are planning on establishing a new physical gold price mechanism by the end of the year that will compete with London and the U.S. Comex. Expected to be denominated in Yuan, this new gold price platform comes less than 10 days after China became the first Asian country invited to be a part of the London gold fix, and unlike the U.S. Comex, will deal in direct physical gold sales rather than in paper futures and derivative contracts.
When the Shanghai Gold Exchange (SGE) opened in 2014, it set out to usurp the West's control over gold and their pricing of gold through the paper markets. And in less than a year, the SGE has created the world's largest gold fund, and is now ready to take over pricing and price discovery for the monetary metal. In fact, sources claim that right now premiums on large sales of gold bullion are ranging as high as $600 over the current paper spot price.
It is working for Allied. The debtors had to reschedule flush of shareholders and come to the table.
There is a research paper titled “The Changing Nature of Chapter 11”, written by Bharath, Panchapegesan, and Werner, September 2013. In this working paper, they find that there have been significant changes in Chapter 11 outcomes during the last 10 years compared to the pre 2000 era. They find that new developments such as debtor-in-possession (DIP) financing and adoptions of key employee retention plans (KERPs) create an environment that heavily favors creditors, which will inevitably eschew shareholders. This is exactly what is happening in our case with MCP, despite MCP reporting Assets significantly greater than Total Liabilities.
That is what we had to do for Allied Nevada. Shareholders called in or emailed them. You need as many shareholders as possible call them, email them and request that equity committee. Hopefully some of the big dogs start piling in.
Allied's dip lenders were asking for 25% of a 1.4 B company for $25 miillion in chump change.
Now they have an equity committee and lawyers and advisors. It works both ways. There were a lot of shady dealing going on with short sellers and the monied interests with past SEC 105 violations.
This may be Oaktree's dated past...read SEC Sues Three Hedge Fund Advisers for Illegal Short Sale Activity in Connection with Twenty-Two Follow-On Offerings
Exhibit "A" To Voluntary Petition
Case 15-11357 Doc 1 Filed 06/25/15 Page 5 of 21
1. If any of the debtors securities are registered under Section 12 of the Securities Exchange Act of 1934, the SEC file number is 001-34827
2. The following financial data is the latest available information and refers to debtors condition on
March 31, 2015
a. Total assets $2,494,784,000.00
b. Total debts (including debts listed in 2.c, below) $1,786,196,000.00
c. Debt securities held by more than 500 holders Blank
d. Number of shares of preferred stock Blank
e. Number of shares of common stock 278,032,526 168 street name
Comments if any: Blank
SA...Jun. 23, 2015 8:11 AM ET
Silver Bull shares are oversold and cheap after a recent announcement that the company would transfer its listing to the OTC exchange. The company has a solid balance sheet with no debt, and its significant reserves in zinc and silver could make it attractive to suitors as the mining industry consolidates. This stock also looks deeply undervalued based on the fact that mining giant Coeur d'Alene invested in this company at much higher prices.
In addition, the market appears to be overlooking the value of nearly 5 billion pounds of zinc which are indicated at the Sierra Mojada Project. Silver prices show signs of having bottomed out and could be poised to rise as industrial demand increases due to global growth.
This article states that Silver Bull's resource estimate for zinc now stands at nearly 5 billion pounds and that much of it would be accessible through (low cost) open-pit mining. Zinc currently trades at about $1 per pound so that represents the potential for about $5 billion in revenues over the life of the mine. Silver Bull also has about 91 million ounces in silver reserves which could represent revenues of about $1.5 billion, even based on today's depressed silver price. The article states:
"Silver Bull got hit by the turmoil in the precious metals markets, but the bull isn't dead yet. The recent resource estimate is a good first step to convert the Sierra Mojada silver project into a zinc project with a substantial silver production which will be applied as a by-product credit.
The next step for Silver Bull will be to complete a PEA on the zinc-focused scenario and as the project contains a very high-grade zinc zone, I would expect said PEA to be positive. I'm still keeping an eye on Silver Bull Resources, and it's quite unfortunate to see the recent decline in the share price as the new focus on zinc actually makes a lot of sense."
She can claim she parroted what she had been told by management. Material factual statements is what the court will have to be concerned about.
Goldcorp Announces Increased Credit Facility
VANCOUVER, June 11, 2015 /PRNewswire/ - GOLDCORP INC. (TSX: G, NYSE: GG) announced today that it has increased its credit facility from $2 billion to $3 billion and extended the term to June 10, 2020, under existing terms and conditions.
The unsecured, floating-rate facility bears interest at LIBOR plus 120 points when drawn, based on Goldcorp's current BBB+ rating, and is intended to be used for liquidity and general corporate purposes.
allsport232323 • Nov 25, 2014 7:45 AM
Search seeking alpha for GG. When I spoke w Tracey in IR last week, I was able to narrow down the names of interested firms they spoke with. Both GG and NEM have recently idled projects, sold properties and are looking for US partners (read their headlines... BOTH have had nothing but trouble overseas in 2014). Also, GG has worked with ANV on hardware/supplies before (confirmed w Tracey 11/18)...
"GG needs a mine that is producing or near production. Goldcorp needs production growth, and while it might be tempted by a company with a large project around the feasibility study phase, I don't think it wants to deal with all of the pre-production issues.
The company needs to have a large mine. Goldcorp isn't going to be interested in smaller mines that don't move the needle. It produces 3 million ounces of gold per year, and so anything with less than 200,000 ounces of annual production is simply not worth management's time, continued...
flanders.automation • Nov 25, 2014 12:33 PM
She did mention 1 share of GG for every 5 shares of ANV but that was 2 weeks ago when both companies were trading lower. When I questioned majority ownership, she said the conditions for the exchange required ANV to own a minimum of 51% of the shares. My rough figures show that Hycroft could be fully funded with as little as 30 million shares
Goldcorp cashing up.
June 15, 2015 — 5:08 PM EDT
Goldcorp Inc., the world’s largest gold producer by market value, will sell its 26 percent stake in Tahoe Resources Inc. for C$998.5 million ($811 million) in a secondary share sale.
Goldcorp is offering 58.1 million common shares of Tahoe for C$17.20 each, Vancouver-based Goldcorp said Monday in a statement. Reno, Nevada-based Tahoe, whose shares closed today in Toronto at C$18.49, won’t receive any of the proceeds from the offering, Goldcorp said.
“Divesting non-core assets has been instrumental to Goldcorp’s growth and consistently sound financial position, and the sale of the Tahoe position supports that strategy,” Goldcorp Chief Executive Officer Chuck Jeannes said in the statement.
If that surprised you wait until you, read this SA piece.
Did COMEX Just Receive A Physical Gold Bailout From The Feds?
Avery B. Goodman has been a licensed attorney for 29 years, and has concentrated in securities law related cases. He holds a B.A. from Emory University, where he concentrated on history and economics. He also holds a Juris Doctorate degree from the University of California at Los Angeles Law School and is a member of the Bar, licensed to practice law in several jurisdictions.
Mr. Goodman serves on the roster of neutral arbitrators of the National Futures Association (NFA) and the Financial Industry Regulatory Authority (FINRA). His career has consisted not only of prosecuting cases on behalf of clients, but also in sitting in judgment on the cases involving others, and making important decisions on intra-industry and customer disputes.
An independent investor for decades, Mr. Goodman has observed that markets are being subjected to frighteningly high, and still rising, levels of disinformation. Investors desperately need an impartial voice of logic, reason and common sense to guide them. For that reason, he is now sharing thoughts with the community.
On June 1, 2015, JPMorgan added almost exactly enough ounces of physical gold to patch the deficiency between supply and delivery demand at COMEX, avoiding widespread dealer default.
Declassified documents, along with strong circumstantial evidence, indicate that it was not JP Morgan, but its most important customer, the US Federal Reserve, that just bailed out COMEX.
The deficit in world physical gold supply will be at least 606.1 tons in 2015, but may be much larger, and similar incidents are likely in the future.
The deficit in world gold supply vs. demand will grow much larger in 2016 and beyond.
Even if the entire remaining US Gold Reserve were mobilized, prices could not be permanently held down to current levels, making gold and gold mining stocks a good deal now.
Comex delivery problems getting worse?
10:06p ET Tuesday, July 9, 2015
Dear Friend of GATA and Gold:
Recent reports from the U.S. Commodity Futures Trading Commission and the CME Group, operator of the New York Commodity Exchange, indicate that JPMorganChase & Co. is administering the Federal Reserve's gold swapping and lending operations and that for the time being the exchange's gold contracts are being guaranteed by the U.S. government.
That analysis is published today by Colorado securities lawyer Avery B. Goodman, who draws heavily on GATA's documentation of U.S. government intervention in the gold market.
Goodman's conclusion arises largely from the unnecessarily disproportionate assignment to JPMorganChase of Comex gold deliveries, as recorded in the CFTC's June 2 bank participation report for gold futures. Essentially, Goodman writes, last month the Fed rescued the Comex from a gold delivery deficiency, but the U.S. gold reserve, now guaranteeing the Comex, will not last forever.
Goodman's may prove to be the most important analysis written about the gold "market" this year. If they meant to provide the world with any serious journalism, mainstream financial news organizations quickly would put questions about Goodman's analysis to the Federal Reserve, CME Group, and JPMorgan Chase.
Goodman's analysis is headlined "Did Comex Just Receive A Physical Gold Bailout from the Fed?" and it's posted at Seeking Alpha
First Majestic Silver CEO has contacted the CFTC regulator to request that activities in the COMEX silver market be investigated.
Lawrence Williams | 5 June 2015 16:59
There is a continuous debate taking place as to whether the principal precious metals prices are being manipulated by the big money for whatever reasons, or indeed in the case of gold at the instigation of some big Central Banks of which the US Fed is reckoned to be the main culprit. The idea is completely dismissed as complete rubbish by most mainstream gold analysts – indeed most will never mention the possibility. But activist groups like the Gold Anti Trust Action Committee (GATA) have researched, and put forward, some compelling evidence, dating back many years, which does indeed suggest that the monetary establishment has certainly been predisposed towards controlling the gold price as a runaway yellow metal price is seen as a destabilizing influence on the global fiat currency system in terms of suggesting a global lack of confidence in paper money.
The jury remains out here – those who believe in gold price manipulation and repression will not be moved from their viewpoints, while the mainstream still looks upon these proponents as representing the lunatic fringe – ‘gold cultists’ was the term used at the recent Bloomberg Precious Metals Forum in London. Be this as it may there is an indication that the ‘cultists’ may be gaining a little ground in that some hitherto reluctant very respectable mainstream media have at least recognised in print that there is a raft of opinion which holds this view, having totally ignored this in the past.
But that is gold – with all the political implications that exist. The depths of government economic policies may be devious and remain well hidden with the ultimate intent of maintaining confidence in the status quo.
Thu Jun 4, 2015 9:40pm EDT
Allied Nevada Gold Corp has failed to disclose the value of its gold reserves and other information shareholders need to assess the miner's plan to exit bankruptcy, their committee argued in court papers filed on Monday.
The company is "literally, sitting on a pile of gold (and silver)" and it may be seriously underestimating the value of its business in its disclosure statement, according to shareholders.