Nemaska Lithium Inc NMKEF

Creditor Claim Outcome

[mick1888]

Just had notification that the monitor (PwC) and Debtor (NmX) have recognised my claim as an 'Equity Claim'. Not sure if that's good (to have accepted the claim) or bad (that I'll be at the back of the distribution chain).... ;-{

[Vermast1]

I just got the same email with them stating i am an Equity Claim, to be honest I have no idea what it means and hope someone can help!  Cheers

[Takeactionnow]

This is the expected outcome, which confirms that shareholders, unless they had a claim other than simply their status as shareholder, do not have any special entitlement under the CCAA proceedings. The bottom line is that creditor claims are paid in priority. The word "equity" simply refers to shareholdings.

[Tiger737373]

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

[mick1888]

Thanks Tiger, it is also my hope to still be an NMX shareholder in ten years time. But, it would have been a good safeguard to have been recognised as something other than an end of the queue mug.... ;-) What purpose does it serve to be recognised as a 'Equity Claimant'? Is it only to give us a seat at the table during discussions and court proceedings? I still think there is a good

[Takeactionnow]

Mick, the reality is that classifying shareholders who filed a claim (simply as shareholders) as "equity claimants" is a polite way to say that there is no priority claim in the CCAA proceedings. This is in fact the situation outside of CCAA proceedings, where shareholders take after various categories of creditors and preferred claimants.  While it was unnecessary to file a claim

[TicTacTo]

From your knowledge, what is ratio of case wherein shareholders survive LACC process ?

[Takeactionnow]

A very extensive report was written in the subject a few years back: https://www.ic.gc.ca/eic/site/bsf-osb.nsf/vwapj/Papillon-Gosselin-2005-ENG.pdf/$FILE/Papillon-Gosselin-2005-ENG.pdf

[Takeactionnow]

Tiger, 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

[Tiger737373]

Hello Takeaction, I have always agreed with your vision on Nemaska, However, on the CCAA file, i do not agree with you on the remaining value for shareholders in the event of a sale. Although the project is evaluated at 2.2 billion after taxes, i doubt that a new owner will give the right price to aquire Nemaska because he will have to put a considerable sum ( 1 billion and maybe more ) to

[TicTacTo]

Do not forget that within PG/NMX discussion, they already plan to later refinance costly bonds through lower interest loan. Final deal should also include loan (non-dilutive) part to replace bonds. Difficult to provide useful expectation as too much parameters, need to wait a few weeks more.

[Takeactionnow]

I may not have been perfectly clear. I agree with you 100% that a recapitalization is definitely preferable, and, given enough time, existing shareholders who bought at a higher price might make money. My point was more that the value of the business or the value of the assets may be higher than investors think, but recapitalization is by far the better outcome for us. Thanks for your thorough

[TicTacTo]

ending with closing price at 16 cents will be already a good story.

[Calgary_AB]

Tiger, I see you can think for yourself if you want to... Here is an exercise for you but you need to take off the NMX hat first: If no investor would put 400 mill and then another billion as you so correctly put it, why do you think anyone in their right mind would put the billion so they can share the profit with another 900million shares? Think about it...