Eco Oro Minerals Corp C.EOM

RE:Who gets paid first?

[NaturalCurrency]

Seems like shareholders are at the bottom of the pyramid / last in line. This waterfall was published by the company at the time of CVR2 (about a year back), dont think this has changed (except for slotting CVR3, which should be somewhere at the top). 

Following completion of the Private Placement, any proceeds from the Corporation’s arbitration proceedings against the Republic of Colombia (the “Claim Proceeds”) will be distributed in accordance with the “Distribution Waterfall” described in Section 8 of the Investment Agreement, in the following order of priority (in each case to the extent that the amount of Claims Proceeds is sufficient):

1. in full repayment of any accrued and unpaid default interest, fees, expenses or indemnity obligations in respect of the CVRs and the Notes;
2. in full repayment of all  obligations, liabilities and indebtedness (including all principal, interest, fees and other amounts) under the Notes; 
3. to holders of CVRs and eligible participants in the Company’s Management Incentive Plan (the “MIP”), in an amount equal to the lesser of (i) US$460,000,000 and (ii) their maximum aggregate entitlements to the Claim Proceeds under the CVRs and the MIP;
4. to the Company, US$30,000,000 which may be used for, among other things, distributions to common shareholders of the Company;
5. to holders of CVRs and eligible participants in the MIP, until aggregate distributions equal their maximum aggregate entitlements to the Claim Proceeds under the CVRs and the MIP; and
6. to the Company, the balance for, among other things, distributions to common shareholders of the Company.