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Bullboard - Stock Discussion Forum Nemaska Lithium Inc NMKEF

Nemaska Lithium Inc is a Canada based lithium company. It is engaged in exploring and evaluating lithium properties and processing of spodumene into lithium compounds in Quebec, Canada. The company supplies lithium hydroxide and lithium carbonate to the lithium battery industry used in electric vehicles, cell phones, tablets, and other consumer products.

GREY:NMKEF - Post Discussion

Nemaska Lithium Inc > CCAA Plan of Arrangement Vote...
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Post by TFSAfunds on Jul 12, 2020 6:32pm

CCAA Plan of Arrangement Vote...

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.

Comment by dalesio_98 on Jul 12, 2020 7:09pm
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.
Comment by dalesio_98 on Jul 12, 2020 7:15pm
Hypothetically, IF, a financing/buyout materializes, a Plan of Arrangement is not required IF secured and unsecured creditors are made whole.
Comment by Takeactionnow on Jul 13, 2020 10:05am
In this scenario (buyout with creditors made whole), presumably there would be residual value to be distributed to shareholders. It wouldn't make sense to repay everything AND give the corporation away.
Comment by phantom666 on Jul 12, 2020 7:38pm
TSFA me thinks ur putting the cart before the horse, lets wait and see what happens with the SISP first.
Comment by TFSAfunds on Jul 12, 2020 9:48pm
phantom, I posted that excerpt because others were questioning what would happen if shareholders were to vote against any proposal. (Say if they're offered 5¢ a share) Not saying anything is a done deal at this stage. A no vote would be shooting yourself in the foot, because then there would be no choice but to start tearing the company apart and selling the assets! Options are non ...more  
Comment by Tcheck on Jul 13, 2020 8:58am
selling the assets would clearly give you more than 5 cents a share . my 5 cents
Comment by Takeactionnow on Jul 13, 2020 10:14am
Little doubt of that, but there has to be enough value to settle with creditors, so a "gross" amount of more than 5 cents a share is required. The best outcome probably includes non-cash settlement with some creditors.
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