Companies Creditors Arrangement Act (CCAA)
I predict the Company may have to file for CCAA protection - similar to Ch.11 in the US - should they fail to come up with a restructuring plan... TCM owes about US $830 million with about US$520 million in unsecured debts, and US$310 in secured debts. The Company has about $210 million cash on hand and the secured creditors would be made whole by seizing the cash and selling off assets. The TCM unsecured debts selling for 25 cents below par value is indicium of high bankruptcy (BK) risks for such distressed bonds...About 15 years ago, Endako Mine was close to BK under the BC Job Protection Commission with Moly selling for US$4/lb. During the interim period, Moly went as high as $40/lb. and now is back down to $5/lb. Mt. Milligan's copper mine net of gold credits is in a continuing loss position. I am betting TCM - as a final resort - will likely file for CCAA protection to keep creditors at bay from realizing on collateral...