Quebec securities commission approves SGV/KWG restructuring plan. Conditions which were brought up during the meeting was that prospectus's be forwarded to all shareholders in regards to the new shares being issued to creditors for debt. Gauthier says these condtions will be met. Creditor meeting still set for April 30,1998.
All creditors are said to be on side for a complete resolution to the restructuring plan. Gauthier also mentions, that the rights offering plan has a guarantor backup for the financing.
Looks like Gauthier pulled this one out from under his hat. In the end SGV/KWG will be a stronger company, with focused assets and good projects, cash in the bank, and no debts and POG up around $315.
Of course we have diluted holdings, and Gauthier gains more control through SGV/KWG's direct and indirect holdings in both companies.
Next will be relisting on TSE/ME, my guess is the shares of SGV/KWG should start to retrade up around the restructuring prices .20 and .40 respectively. If they then announce a successful rights offering, further financing/joint venture partners, to proceed with projects, we could see the prices move up from there. But, getting anywhere near the $1 and $4 respectively, is way out there.
Trading opportunities will abound as the prices will be very volatile, look to regain some loses by flipping in and out over the next year. Good luck to all!
All IMHO! I'm in deep myself with both these !@#$%^&* dogs. |
