RE: Louis Dreyfus Petersburggray, You may be right and you may be wrong but you sure are confusing.
To approach future possibilities with a clear mind, it is necessary to clearly distinguish between the roles and powers of (1) Mount Kellett, (2) Baja Mining Corp. (3) MMB, (4) the senior debt lenders, and (5) The Korean Consortium.
" ... either MK must pony up the funds to complete the mine or BAJ will file BK"
It is my understanding that MK is under no legal obligation to "pony up the funds". MK is a minority shareholder of Baja Mining. Period. If the funds are not "ponied up" in the next three months (from any sources), there is no legal need for Baja Mining Corp. to file for bankruptcy.
The Boleo project is not owned by the Korean Consortium and Baja Mining Corp. It is owned by MMB. The debt instruments are with MMB. Should MMB move into a default position relating to its senior debt, then and only then, would the senior debt holders be in a position to pursue legal action. It is my understanding that a MMB default is not on the horizon until September. What is known is that the senior debt lenders will not provide further draw downs until the financing is arranged for the cost overruns.
Let's not confuse future debt draw downs, with MMB moving into noncompliance with senior debt convenants and into a default position..
" ... or whether MK stands to make more money by forcing BAJ into bankruptcy?"
Mount Kellett does not have legal standing to force Baja Mining Corp. into bankruptcy. Indeed, a bankrupt Baja Mining Corp. would hold little value if MMB's primary asset (the Boleo Project) were seized by the senior debt holders.
This whole (hole) issue is already a sticky wicket. Let not make it any more complicated. Please.
Doug.