OTCQX:PALAF - Post by User
Comment by
Cocorockon Mar 23, 2017 11:36am
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Post# 26020401
RE:Resolves to Commence Arbitration Proceedings Against CNNC
RE:Resolves to Commence Arbitration Proceedings Against CNNCKey points in the Arbitration Proceedings Against CNNC:
- Disputes under the LHM Shareholders Agreement are subject to the laws of Western Australia
- Currently, the Company has executed standstill agreements with bondholders representing 75% of holders of 2017 Convertible Bonds and 87% of holders of 2020 Convertible Bonds.
- In the event the Potential CNNC Option is proven to be valid, it is unlikely that the Company can implement the Restructure Proposal.
- CNNC's actions are disappointing given the support the Restructure Proposal has received to date, CNNC's failure to proceed with the acquisition of an additional 24% stake in LHM when it was offered to them last year, and CNNC's repeated refusal to fund the working capital requirements of LHM.
- As a result, CNNC, our joint venture partner, has put at risk the interests of Paladin's stakeholders, including approximately 26,000 small shareholders, approximately 1,000 employees, international financial institutions and sovereign-related entities.
- Paladin intends to dispute CNNC's actions unless an acceptable compromise can be reached with CNNC.