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CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D



TSX:CUS.DB.D - Post by User

Comment by ocean112on Sep 03, 2014 3:27pm
570 Views
Post# 22902698

RE:legal battle

RE:legal battleagain - I beg to differ (a company's market cap has nothing to do with litigation)....here is the excerpt from CIBC....which is VERY revealing.....

____________

Canexus believes MEG has no right to refuse the tie-in works as under the
agreement it was specified that CLB will be delivered “from the Lamont Station, 
then through the new Canexus pipeline to the MEG Lateral Line, connecting to 
the Canexus pipeline for ultimate delivery to the NATO terminal… specifically the 
Pipeline Agreement expressly provides from the new Canexus pipeline from 
Lamont Station to be tied into the MEG Lateral Line.” One clause of the 
agreement requires MEG to construct the Interconnection facilities to tie-in the 
new Canexus pipeline from Lamont Station into the MEG Lateral Line. In the 
alternative, “Canexus will construct facilities to tie-in the new Canexus pipeline 
from Lamont Station into the MEG Lateral Line and that MEG shall make its 
facilities, personnel, rights of way and lands accessible to Canexus.” 
However on August 20, 2014, MEG advised Canexus that it withholds its 
permission to perform the tie-work because “Canexus had not executed further 
commercial agreements demanded by MEG” (not specified which ones).


_____________

If Canexus and MEG are in a legally binding contract - then CUS stands to win significant punitive damages in the event they win a court case....my guess - they will settle and this "fear" overselling will likely correct.
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