Nautilus notified of rescission of shipbuilding contract

[Monk3]

The possibilities seem endless but as far as we know nothing is being worked on other than MB and Metalo doing some shady backroom dealings with NUS exec. I wouldn't mind at all if China finished the ship then did the same lease agreement with NUS. As for them going it alone, well, always been a possibility that I have brought up. Need to have done the exploration/sample drilling work. If I was China, I would just buy NUS just like they did SMD.

[GGGGG]

"as we know nothing is being worked on other than MB and Metalo doing some shady backroom dealings with NUS exec. "
Nothing is being worked on? The ship is probably 80% completed. They are clearly doing something.

"MB and Metalo doing some shady backroom dealings with NUS exec." That's not clear at all.

The issue I with MAC, I think, is MAC wants Nautilus to have the financing, $350M or so, in place to pay to operate the ship.

[woodrhino]

"as we know nothing is being worked on other than MB and Metalo doing some shady backroom dealings with NUS exec. " Nothing is being worked on? The ship is probably 80% completed. They are clearly doing something. "MB and Metalo doing some shady backroom dealings with NUS exec." That's not clear at all. The issue I with MAC, I think, is MAC wants Nautilus to have the financing, $350M or so, in place to pay to operate the ship.

There's a strong probability that MAC just stopped the payments to the shipyard.  MAC may have been dismayed by NUS progress on financing overall, and felt the need to stem bleeding on the cost of the ship.  Even the terms of the DSMF loan may have freaked out MAC into default. And  I have no idea if MAC eventually got the 10 million that was cyber thefted from NUS.  Its a ship thats almost done, and specifically trimmed out for NUS.  Major shareholders will have to think of cost of bankruptcy vs funding the ship.  Or enlarge the DSMF loan to fund the ship with eighteen million, and convince the shipyard that the total cost will be paid so they'll keep the build schedule going.

[Monk3]

Ugh. How many times do I need to say this: Chinese shipyard building a ship for MAC, not NUS. Mike provides progress reports for MAC making it seem like NUS has something to do with a ship being built for MAC. Oooooo, look at our progress we are at 75% complete. No, "We" aren't, they are. Good for them. NUS's sole job is to find financing. What is going on with that work? Where is the progress report for that? It's been a couple of years now. We are in talks with BlackRock (or one of the other 500 companies controlling over $80 trillion), Chinese/Japanese governments, Zuckerberg, Musk, Gates, etc. where are those progress reports? Instead of creating a "funding company" with a former director at the helm who will receive massive compensation for finding a financier? Where is Mark Horn's progress report? It is in the contract! MAC will stop building the ship once the hull is complete if financing is not in place, yet they continued on, now they are not. Hey, it's Wednesday, let's give 1.5million warrants out. Shady backroom meetings not clear? Exactly.

[GGGGG]

The lease of the ship is turning is turning into an obstacle. If you are optimistic the main shareholders are playing chicken with MAC. Right now it is probably not Mike Johnston who is running the show, it is Metallo+MB that is running things.

Months ago I posted a link to an article about Usmanov relocating workers from Moscow to a cheaper location, so that kind of thought process might be at play here.

[GGGGG]

The Shipyard’s notice of rescission is in response to MACs failure to pay the third installment of the contract price (~US$18M + interest). In its press release of December 11, 2017, the Company reported that the Shipyard had notified the Company of MAC’s default. Notwithstanding the rescission of the shipbuilding contract by the Shipyard, discussions are continuing and the Company will issue further updates as matters develop.

  Would bankruptcy be good or bad for small shareholders if the lease with MAC was canceled in bankruptcy court?  New shares of an obligation free company would be issued and MACs payments might be treated like debt, although MACs contracts are with a Chinese entity and the ship is in China so Chinese law and custom might be controlling as to the PSV and machinery.  Is the lease controlled by Canadian or Chinese law?  One of the wild cards in all this is what the government of PNG will do.  One does read stories of 'asset stripping' in China, but those might be biased or ill-informed.  If new shares were issues I would expect the number of shares to be multiples of the current share count.