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Message: Why May 25th, 2011 DEADLINE
I've been wondering just why Jilin would pick the above date to draw a line in the sand for their debt to be paid back. Then it dawned on me as we wait for the Q3 MDnA which should be out in mid-November. Well we were already given a clue in the last press release to expect laclustere results again. Then we won't see the 2010 year end data till Feb of next year. That really only leaves the first quarters results of Jan, Feb and March to be released in mid May. So with about ten days after that the Chinese will make their decision on what to do with their investment then. I guess that will be enough data to match the promises made. So then what to do with the almost $19M of long term debt (which IMHO will only grow higher at the 10pct its growing by). Then there's the growing list of Promissory Notes (listed at $12.5M to June 30th). And that we already know does not include the extra $1.4M that was borrowed in mid-July. And then there the little matter of the Preferred Share Dividend Liability (their words, not mine) of $8.2M more. Of course the Dividends Payable which is a further $1.8M has to be added, so that's just over $10M there. Again all these debts and obligations are only as of June 30th. That does not include the "bank indebtness", "accounts payable", "capital leases", and "site restoration". Whew, did I miss anything there. Well you could look it up yourself if you dare to. Just make sure the kiddies are in bed by then. So that would explain the May 25th deadline next year. And as we see Jilin has the quorum at the BoD level and revoked the CEO deciding vote. It all makes sence now.
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