Nemaska Lithium puts itself on the block.... 2020-01-29 15:36 ET - News Release
Ms. Gabrielle Tellier reports
NEMASKA LITHIUM PROGRESSES IN ITS RESTRUCTURING EFFORTS UNDER THE CCAA
Nemaska Lithium Inc. has provided an update on its restructuring efforts under the Companies' Creditors Arrangement Act (CCAA) initiated on Dec. 23, 2019, under the supervision of the Superior Court of Quebec and PricewaterhouseCoopers Inc., as monitor of the business and financial affairs of the corporation.
Implementation of Sale and Investor Solicitation Process
The Corporation today obtained an order from the Court that approves Nemaska Lithium's proposed sale and investor solicitation process (SISP) to be conducted in consultation with the Monitor and the Corporation's financial advisors, National Bank Financial Inc. and Clarksons Platou Securities AS. These financial advisors have significant knowledge of the Corporation's affairs as well as relevant expertise regarding SISP procedures.
The SISP is intended to generate interest in either a recapitalization of the Corporation, or in the business or its assets, with the goal of maximizing return in respect of the Corporation's assets and potentially creating the foundation of a plan of compromise or arrangement for all stakeholders of Nemaska Lithium.
The SISP procedures will commence on February 28, 2020 with the transmission of a "teaser" letter to potentially interested parties. The deadline for submission of non-binding letters of intent is April 17, 2020, with a target closing date of the transaction in mid-August 2020. Potential interested parties wishing to obtain more information on the SISP procedures may consult the Monitor's website.
Settlement of the Court Case with Holders of the Senior Secured Bonds
The Corporation has reached an agreement in principle with the Nordic Trustee to settle its Court case with the holders of the Senior Secured Bonds issued pursuant to the bond offering announced on May 10, 2018 (the "Bonds" and the "Bondholders"). The settlement provides that the Corporation is released of its obligations towards the Bondholders and obtains the discharge of the security which secured the Bonds, in exchange for a lump sum payment of USD 30M.
The settlement, which is conditional upon its formal approval by Bondholders holding in excess of two thirds of the principal amount of the Bonds and by the Court, is a meaningful progress in the Corporation's restructuring efforts under the CCAA. The Bondholders are set to hold a Bondholders' meeting on February 12, 2020, to vote on the proposal. The Corporation has filed an application with the Court to seek approval of the settlement and expects that such application will be heard by the Court on February 13, 2020.
For further information regarding the Court case with the Bondholders, please consult Nemaska Lithium's press releases dated September 17, 2019, September 25, 2019, and December 5, 2019.
Claims Procedure Begins in Collaboration with the Monitor
The Corporation today obtained an order from the Court that approves Nemaska Lithium's proposed claims procedure in order to proceed as soon as possible with the review and determination of the number and quantum of claims against the Corporation and its subsidiaries, as well as their directors and officers. Pursuant to the Claims Procedure Order of the Court, persons having claims against the Corporation, its subsidiaries, and their directors and officers must file their proofs of claim at the latest on March 31, 2020, failing which these persons will be barred from asserting their claims.
For further information regarding the claims procedure, please consult the Monitor's website: https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc/claims-process.html.
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, the Corporation intends to facilitate access to green energy, for the benefit of humanity.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.