DGRI announced its’ subsidiary, Dutch Mining LLC
Post# of 479
Posted On: 06/26/2014 2:07:33 PM
DGRI announced its’ subsidiary, Dutch Mining LLC has filed for liquidation in the United States Bankruptcy Court in the Northern District of Georgia. There should no impact on the operations of Dutch Gold Resources, Inc., except that its’ balance sheet should be much improved at the conclusion of the liquidation of the defunct subsidiary, to the extent of the debt extinguishment that is being sought.
The likely outcome will be that the Company could reduce its corporate indebtedness by approximately $3,500,000, positively impacting both the balance sheet and profit & loss statement by Q3 2014.
In addition to the Dutch Mining LLC liquidation, the Company has seen some success in settling its remaining corporate debt. It has settled approximately $150,000 of indebtedness at an average of twenty cents on the dollar. The Company believes that there are additional opportunities to resolve the indebtedness that remains after the completion of the Chapter 7 proceeding of its subsidiary.
"These actions are intended to improve the Dutch Gold balance sheet, which may have the impact of lowering the Company’s cost of capital in the future", said Daniel Hollis, CEO. "This is a positive development for the Company. We have identified financial re-engineering as a major goal for Q2 2014 and we are pleased to have initiated this action, executing on our plan to revitalize Dutch Gold Resources, Inc.", he added.
An 8K is being filed with the Securities and Exchange Commission regarding this action.
The likely outcome will be that the Company could reduce its corporate indebtedness by approximately $3,500,000, positively impacting both the balance sheet and profit & loss statement by Q3 2014.
In addition to the Dutch Mining LLC liquidation, the Company has seen some success in settling its remaining corporate debt. It has settled approximately $150,000 of indebtedness at an average of twenty cents on the dollar. The Company believes that there are additional opportunities to resolve the indebtedness that remains after the completion of the Chapter 7 proceeding of its subsidiary.
"These actions are intended to improve the Dutch Gold balance sheet, which may have the impact of lowering the Company’s cost of capital in the future", said Daniel Hollis, CEO. "This is a positive development for the Company. We have identified financial re-engineering as a major goal for Q2 2014 and we are pleased to have initiated this action, executing on our plan to revitalize Dutch Gold Resources, Inc.", he added.
An 8K is being filed with the Securities and Exchange Commission regarding this action.
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1️⃣I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.
2️⃣All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
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