Yesterday the court approved the reorganization of Nemaska Lithium, which will be 50% owned by Investissement Québec and the Pallinghurst group.
Posted Oct 15, 2020 at 8:50 PM
The offer is based on the value of the claims of the group consisting of the two new owners and Nemaska Lithium's largest creditor, Orion Mine Finance, which retains its rights. The new Nemaska Lithium is privately owned, which means shareholders are left behind. "Unfortunately, shareholders will not receive any payment or distribution in respect of their shares as part of the process," the company said in a statement.
Nemaska Lithium had taken on the operation of a mine and a production facility for battery-grade lithium and was forced to place itself under the protection of corporate creditors law on December 23, 2019. Investment Quebec and Pallinghurst have pledged to reinvest up to $ 600 million to relaunch the company, of which now $ 95 million each.