BRE-X and other affiliates had interlocked stock ownership revealed in the latest papers published in the court papers. When bankruptcy was filed, the firms all have cash and stocks.
Now the people in charge has exchanged stocks that each affiliates held, the companies can be separated financially. BRE-X might also survive, with what ever left over to either disposed(too small an asset) or distributed to the stockholders, after some shares are to be retired.
Interesting fact was that gold mines can be found in several forms. The motherload and veins(in the center of mountains such as the Denver find), the spills from volcano and compacted by geological shifts(Nevada finds), and the washed down of spills(California, Alaska and Amazon river finds). They all depleted when people give up the scare finds of fines(small particles), except in Nevada.
The bankruptcy court of course does not have the manpower to look at the BRE-X asset in Indonesia. What has to be done to discover spills or veins is to sort out 1 oz finds in a ton of earth by melting large samples? Not by core drilling and finding solid nuggets(salting was the accusation of BRE-X fraud). Nevada finds go down many hundreds of feet from the surface, which core drilling can never reach. However, no one was accused of buying the gold to salt the core drillings, except one person died in Indonesia with the secret maybe. No money was presented in evidence, traceable to the gold found in the core drillings? No gold was ever kept in any safe?
David Welsh ran a sloppy shop was more likely. Money was made in the stock market the easy way, was more likely. Then it was downhill all the way.
The value in BRE-X could have been the assets of a lease. If the lease still exists, is there gold to be found may never be answered?
Will the trustee conserve the money to give back to the stockholders? It looks better now then ever, since an effort is made to let some affiliates survive? Lawsuits of fraud died with David Welshed also, but some others still have to answer a number of questions and charges.
It is not the end for BRE-X yet? |
