No board or management team wants to hear their organisation is at risk of becoming insolvent.
That is why they often adopt the 'ostrich' approach and leave the situation so long that insolvency becomes the only real option. That was the situation with Gascoyne Resources Limited 18 months ago. Even with gold at an all-time high, rising costs and inflation meant they were losing money and raising funds to cover operating losses. To keep following that path meant insolvency and their rich new deposit sold at a fire sale price.
KordaMentha's innovative solvent restructure means Spartan Resources is now operating at five times its previous value and has a strong future of growth.
Read the full article here, as published in Resources Review (see page 18).
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