Nemaska Lithium Inc NMKEF

RE:RE:CCAA Plan of Arrangement Vote...

[dalesio_98]

dalesio_98 wrote:

TFSAfunds wrote:

From PwC, when the plan of arrangement is voted on... In particular, note the second paragraph. Without funding, the company is history... assets must be sold.

Ultimately, the company files its Plan of Arrangement and forwards it to the creditors/shareholders. A meeting of the creditors (and shareholders, if applicable) is called to vote on the Plan. For the Plan to be binding on each class of creditors, a majority of the proven creditors in that class, by number, together with 2/3 of the proven creditors in that class, by dollar value, must approve of the Plan presented to them. If a class of creditors approves the Plan, it is binding on all creditors within the class, subject to the Court's approval of the Plan. If all of the classes of creditors (and shareholders, if applicable) approve the Plan, the Court must then approve the Plan as a final step. Upon Court approval, the company continues forward as outlined under the Plan until it has satisfied the requirements under the Plan.

If a class of creditors or the Court does not approve the Plan, the company does not automatically go into bankruptcy, but the Stay is lifted. However, once the Stay has been lifted, the pressures that caused the company to initially file for CCAA protection from its creditors will likely return and, accordingly, it is quite likely that the company will be placed into receivership or bankruptcy.

The Plan of Arrangement comes after Judge Gouin is presented with Nemaska/PwC recommendations and approval of the bid (s) on or about July 20, 2020.

The hypothetical question IF a financing/buyout of outstanding shares would occur, timeframe is between now and July 20th unless that date is pushed forward.

Hypothetically, IF, a financing/buyout materializes, a Plan of Arrangement is not required IF secured and unsecured creditors are made whole.