PAS pasminco limited

PAS - still calling on shareholders to show what t

  1. 17 Posts.
    Hi guys - I am just catching up on all the responses to my previous post on 22 /5/02 on PAS – Calling on Shareholders to voice outrage” There were 27 responses all of them interesting with the exception of one or two schoolboyish comments.

    Unfortunately the discussion went down a path I did not intend exploring. By the way I agree with most of the comments about management responsibility and how and why PAS ended up where it did. That is history. That was not my complaint.

    My point is that I am concerned as to what is happening to PAS now.

    Let me explain, the creditors could have a fire sale and if they did that then they could legitimately say to the shareholders sorry chaps we could not raise sufficient funds to pay off all the creditors and consequently there is nothing left for you (you are at the end of the line) therefore your shares are worthless.

    However, in the case of PAS the creditors decided to be sensible and they are now saying well we came up with this new method of disposing of the assets and consequently there will be sufficient funds to pay off all the creditors plus some more, but you shareholders we will treat you as if we had a fire sale (or nearly so) therefore your shares are still worthless. Well the creditors cannot do that, - if there is a blue sky element in that equation than that blue sky belongs to the existing shareholders.

    But what happened? The creditors went to ASIC and the Takeovers Panel to change to rules so they could cut out existing shareholders. Now in my view that is outrageous – it is outrageous because as I have illustrated in my previous post it would be relatively easy to come up with a capital structure that would be demonstrably fair and equitable to all stakeholders. So that is why existing shareholders should be outraged and should show what they are made of.

    There were one or two responses to my previous post saying that small shareholders cannot do anything. Well that may have been the case in the past but not any more, the Internet has changed that. Communication is now easy, all it takes is just a few like minded shareholders, - and then snowball effect, - and we could even start a revolution. Don’t believe me? Just see what happened to PTD.

    Regards to all,

    Geom


 
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