GREY:NMKEF - Post by User
Comment by
Takeactionnowon Apr 10, 2020 2:09pm
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Post# 30897611
RE:RE:Latest Monitor Report
RE:RE:Latest Monitor ReportGreat insight, Tiger. A forward-thinking creditor, while needing to maximize their recovery of any amount owed in a worst-case scenario, wants financing to be achieved and should be prepared to take some risk in helping a restructuring happen. This is why service providers of cash-strapped companies will take shares as compensation. Down the road, more immediate revenues can be realized by getting the mine into production, but revenues are maximized with the Shawinigan plant in operation.
Tiger737373 wrote: Thanks, Mick and Takeaction, always interesting to read your post.
When we take the time to analyse the last report, it is very nice to see several interested parties. But when we examine certain creditors, they are mainly due on the basis of contractual disputes over the delivery of the lithium products delivered. This does not mean that all of these requests will be considered once the CCAA is completed.
With your permission, now that we know there are multiple parties involved, i would not be surprised to see one of the parties involved wanting to increase the production of lithium hydroxide in order to satisfy all contractual disputes. A further increase in production could be a smart strategy knowing that the government is ready to massively support the project. (IQ,maybe HQ and CDPQ)
HAPPY EASTER EVERYONE ( KEEP SMILLING )