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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bidder who wrote (923)	4/15/1998 6:31:00 PM
From: Madharry	Read Replies (1) \| Respond to of 1706

If Royal Oak is Us corporation and the debt insruments are governed by US law then Royal Oak can certainly considered a voluntary filing as an option, of last resort. This would hurt the bondholders a lot more that the sharholders whose are in this for th elong term anyway and until the mine gets completed and the price of gold goes up the stock is not going anywhere. As far as I know the only declared event of default has been that the suppliers were not paid. The bondholders need to agree to the deal in order for the interest payment to be made and the mine to be completed. Otherwise the bankruptcy court will certainly approve this kind of financing. So why give up 20% of the equity for no reason? My comment regarding the bonds going for .75 is that if the mine is perceived to be not economically feasable the bond would be going for .10 on the dollar cause what else does a RYO have going for it at the present? If I were Witte I would definitely be hanging tough with the bondholders Because she can get the financing approved and the mine devloped via the bankruptcy court and not have to make interest payment for awhile. But in the meantime the bonds drop big time in value and probably will be a good buy if that happens. Two years from now with gold at $400 everyone will be sitting pretty. In the meantime those piglet market makers on the AMEx must be grinning from ear to ear at those fat comissions for no risk.