Re: Article - fwiw
The one thing I know is that debt is a noose that commodity juniors will eventually trip over. The only surprise is that they kept the music going for as long as they did. Bankers/institutions see an opportunity to move up the ownership chain via their debt. Whether they simply take the assets for their own or dilute ruinously, it works out to the same thing for them. The old saw about 'borrow $100m and it's the bank's problem' only works to a point. Sometimes in commodities, timing is everything. Claim the assets 18 mos. ago, bad move. Claim the assets now (1 1/2 years closer to the turn in prices), maybe it's not so bad to change from a creditor to an owner.
Regards,
Naamkat