Bonds interim distribution should be done no news ...
NEMASKA LITHIUM ANNOUNCES COURT ORDER FOR INTERIM DISTRIBUTION OF NOMINAL AMOUNT OF USDA 350M SENIOR SECURED BONDS
The Superior Court of Quebec has ordered Nemaska Lithium Inc. and the Nordic trustee of the $350-million (U.S.) nominal amount of the senior secured bonds issued pursuant to the bond offering announced on May 10, 2018, to co-operate so as to cause the escrow manager of the bonds to distribute to bondholders from the amounts held in the U.S.-dollar escrow account, the $350-million (U.S.) nominal amount. The distribution to bondholders is expected to occur within 15 business days of Nov. 27, 2019, and shall be made in accordance with the bond terms and without prejudice to any right of the bond trustee under the bond terms to withhold funds from, and previously to, such distribution to cover fees, costs, expenses, indemnity or any other amount payable to the Nordic trustee under the bond terms, as the case may be. In connection with the court order, it was also agreed to cause the principal amount of the claim under the bond terms that is secured on a first-ranking basis to be reduced from $350-million (U.S.) to $100-million (U.S.).
The court order has been issued further to the corporation's application filed on Sept. 16, 2019, with the Superior Court of Quebec, in connection with its arrangement proceedings under the Canada Business Corporations Act, which seeks the discharge of the security which secured the bonds. The hearing of such application is set for January, 2020, in Montreal. It is the corporation's view that the bonds were discharged. The Nordic trustee considers that the bonds were not discharged, and that the corporation owes penalties to bondholders.
Nothing in the court order constitutes a ruling of the court as to the positions raised in or by the continuing litigation under the bond terms and does not constitute an admission of any parties as to the positions or issues raised or any remedy that may be ordered by the court.