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

To: scott who wrote (927)	4/16/1998 10:24:00 AM
From: Madharry	Read Replies (1) \| Respond to of 1706

I don't know what your sources are but I would be surprised if this kind of proposed dillution can be done without shareholder consent. I think the bondholders may be from Kansas. As a shareholder I'd take my chances in a US bankruptcy court rather than give up equity. I buy time and don't have to pay the bondholders squat until the mine starts operating. Heck they probably wouldn't see a dime for two years! I have no problem with a bump in the rate. Of course these deals take time to negotiate. Probably none of the participants can approve it on their own. They have to go back to their committees to get approval. But I can assure you Bondholders do not like to hear the word "Bankruptcy" and Witte will get this mine completed one way or another._BTW I have some experience with bankruptcy and it is a wonder to see how long a voluntary bankruptcy can go on before being converted into involumtary. Usually only happens after the court is convinced that the company has no hope of becoming solvent again. Royal Oak is far being in that case. In the meantime after the voluntary bankruptcy lender usually trip over themselves trying to lend new money because they end up with a superior colateral position. I believe the Board would be in big trouble if they gave up equity without strongly considering voluntary bankruptcy. Dorothy