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Has anyone besides me read the latest update on the monitors website? Lots of information & updates but need a law & accounting degree to decipher it. Sounds like the company is remaining intact and will emerge from bankruptcy & continue operations as a slightly different & slimmed down entity. I still can't tell though what happens to the shareholders of the existing Nautilus. Does anyone care to read the report who has more knowledge on these matters and share your thoughts & interpretations? Thanks in advance.
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I've read through all of the documents twice and I feel somewhat positive mainly because of section 5:15 of the Monitors Third Report. I am not an attorney but how I read it the restructured entity will 'acquire' the issued & outstanding shares and remaining debts of NMI. I read nothing explicit about shareholder loss of equity - but I could be reaching.
Other highlights: 1. PNG Solwara 1claim fully dismissed (unless they file by 8/1), 2. MAC being sued for over 50 million, 3) Serious interested / qualified parties waiting to invest once balance sheets are cleaned up.
What does everyone else think?
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Thanks LongNautilis. This is the most comprehensive update and most detailed information we've gotten to date from the Monitor and nobody else has anything to say about it? It sounds like the company is going to come out of bankruptcy by the end of this year with new funding and a new timeline for mining operations to commence. Still not clear if shareholders of the existing Nautilus become shareholders in the new Nautilus. Anyone else have any thoughts?
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Per the monitor's latest report, DSMF will use a portion of the secured amounts (after the balance sheet clean-up) to acquire all shares of the target subsidiaries. Basically, it looks like they will acquire all subsidiaries & their respective shares out from under Nautilus Minerals Inc. DSMF is the only investor working to keep the company afloat with continued influx of money, per the monitor, so I guess that along with the outstanding loans puts them in the driver's seat.
We all are shareholders in Nautilus Minerals Inc., which will be an empty hull when this process is completed, provided this plan is approved and carried out. We will have no ownership in the new entity that will be formed...
This is grossly unfair. Legal recourse through something like a class action suit is probably our only option.
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To me "acquire all outstanding shares" implies a forced buy out of all shareholders. The question is what they will decide is the purchase price.
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DSMF will not buy our shares. They will buy the shares of the underlying companies. We will own Nautilus Minerals Inc., but it will be an empty shell with no assets. That is why the Monitor (Price Waterhouse) states, under Notice to Shareholders, that is extremely unlikely that such plan will result in any recovery for shareholders in respect of their investment in the company.
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5.19 and 5.20 are saying we the owners of the shares of NMI are to lose. We don't own any shares of the "Target Subsidiaries" hence we don't count.
NMI is not listed as a "Target Subsidiary".
but also the "Company" = NMI has a counter-claim against MAC, how are they going to work this out? Is this going to happen before NMI kicks the bucket or does it matter?
...correct me if I am wrong...
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Club_777,
I believe you are correct. I didn't think about the lawsuit against Mac. Yes, that will be interesting. Not sure how they will work that out... We the shareholders of NMI may yet retain some asset if the lawsuit results in a judgement which Mac pays.
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Clubb_777 that's a great point about the MAC lawsuit. The other wildcard is if PNG appeals by 8/1 - that'll blow everything up. So many questions...
If it's true Think about all the people / companies getting screwed in addition to us: Mike Johnston, Russell Debney, Geoffrey Louden, Shontel Norgate, the current director Glen Withers!, all the Mutual Funds, the PNG government.
Still hard to believe especially since they have qualified investors waiting in the wings. Are we missing something?
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07-29-2019, 12:18 PM
(This post was last modified: 07-29-2019, 12:34 PM by Club_777.)
I was mostly thinking that NMI went for a lawsuit against MAC because they knew that MAC will make a lawsuit against them. At the end i think they will shake hands and nobody will pay anything and the "new" NM will get the ship, but NMI will get nothing. Yes, on SEDI one can see a few relatively large investors (or at least unknown if they still hold shares (does not say that they don't)), apart from the ones related to DSMF and all relatives in there.
Yes, the idea as i understand it is - get the valuable assets, make sure they have nothing in common with NMI (NMI sells them to DSMF for pennies), NMI was a "vehicle" to get money to the subsidiaries, and now all that had shares from NMI are left holding the bag. MB Holding and Metalo all the rest related to them also lose their shares in NMI but they get everything valuable and all assets. So the rest like us and all the ones that the court approved fall in the category that did not participate in the financing of the restructuring efforts (bystanders but owing shares) are screwed.
