Nemaska Lithium Inc NMKEF

Question about bond settlement...

[TFSAfunds]

So an agreement was reached to settle the bond dispute for US $30 million, about half of what Nemaska would have been on the hook for had it gone to court and they lost completely. My question is: Had Nemaska gone bankrupt, how much would the bond holders have received from the liquidation? Would they have the status of a preferred creditor? 

So, in essence, were the bond holders simply cutting their losses by accepting this settlement amount rather than risk receiving less in the event of bankruptcy? And if that's the case, wouldn't that make bankruptcy even more likely, since that's how the bond holders see this playing out?

[Calgary_AB]

My opinion: thats exactly how it is here is one more hint: the other investors (Orion and otehrs) are on NMX's side when it comes to bond settlement, why? because if they settle for less then there is some left for them to share and no one gets all back anyways. At the same time NMX sending the pumpers back out to promote everything is fine so no more lawsuits from retailers in this crutial

[Takeactionnow]

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[phantom666]

The Bond issue is a moot point now.

[Calgary_AB]

Hey Anon (Takeactionnow) NMX already paid over 50 million in interest on money they couldn't use. Now they need to pay another 30 million for the benefit of not ever been able to use that bond money so 80 million plus 10 million penalty to FMC plus who knows how many smaller penalties to other parties... so after 100million of unnecessary costs NMX is back to where it started needing to