Argex Titanium Inc. ARGEF

RE:RE:RE:RE:30 days to restructure......

[lenumero66]

It is still good news. But the bottom line is they owe money, have owed money for some time and the creditors have legal recourse when they aren't getting payed on the terms they agreed too. Maybe one of them is sueing to get their money. This move gives Argex some time to figure out how to pay them.

Filing for creditor protection is hardly good news but this is all this announcement means today. 

The Vietnam deal is still possible. They still have an agreement ECEC which maybe has some ability for financing the technlogoy center. But they don't have the abilitiy to pay their bills right now. 

Creditors have a stake in the company the same as we do. They want to get payed and they get payed first. It is not in their interest to have the company that owes them money disappear.

But they are going to look out for themselves and they have leverage.

Bankrupcy is probably the word everyone is looking at and getting scared of but the financial position of the company was terrible two weeks ago and it hasn't changed.

The courts have granted Argex 30 days where the creditors cannot touch them. In that time Argex must come up with and submit a plan to compensate them.

https://www.pwc.com/ca/en/services/insolvency-assignments/what-is-notice-of-intention-proposal.html