RE:RE:Creditor Claim OutcomeTiger, we need to make a distinction here (the situation may be somewhat more favourable than you think). A billion dollars or so is required to relaunch the project. That money will be spent to complete development.
In addition to this spending commitment, any investor/acquirer must first pay a sum that is satisfactory to creditors and the CCAA judge. In other words, what is the project, in its current state, worth? Typically distressed companies fetch poor prices, but the number of offers and vested interests that have already committed a great deal of capital would suggest that the price may be better than expected. Lithium salts market conditions over the next couple of years are also looking favourable. Thus, what amount would a bidder be prepared to pay to acquire the assets/shares? It is certainly possible, and perhaps likely, that the value exceeds creditors' claims. Structured favourably (since politics has a bearing), "ordinary" shareholders emerge with something, albeit diminished in value.
Tiger737373 wrote: Hello Mick, I would like to remind you that the shareholders objective is not to be a creditor but to encourage a relaunch of the project with the existing shareholders. As for fire sale of the project, the existing shareholders would recieve almost nothing. No major investor will give 400 million to the shareholders and will subsequently invest 1 billion. Relaunching the project is the ultimate goal. Perhaps an asset sale could get us out of this setback. But the majority of shareholders will lose in this type of scenario. Keep hoping, the news looks better. ( Orion Mines )