RE: power of attorney granted by the Company on May 13, 201916 Jul 2020 15:30
@Maddog - The courts have already approved the sale of ore up to net 10$ million dollars. The objection to this by secured creditors was rejected as well. If I remember correctly, one the reasons given on judgement was that the approved amount is a relatively a fraction of what is in stock and doesn't effect significantly the guarantees held against the ore stock. 10% of the net proceeds were to be set aside as payment to secured creditors as well.
Also one of the concerns raised by secure creditors was whether Cadence can really execute what they promise on the JRP. And my line of thinking is that shipping of the Iron ore will go some way to show that they can indeed run the operation to meet the plans set out hence weaken this concern raised by secured creditors. I don't know if I am imagining this or it was actually said the ruling (I think I am imagining :') ).
I agree with you that anything above this net amount would need an agreement in place or further approval by court as mentioned in the ruling on the case from 7th.
Also referring to that ruling, it answers the questions of fairness/legality of the JRP by saying that the financial terms of the JRP are agreed by the creditors and as there is majority consensus to the plans set out in the JRP, they are fair and valid. Also talks about the risk analysis, which it leaves for the creditors to make, on agreeing to the plan proposed by Cadence vs bankruptcy. It also states that during those negotiations it was left for Cadence to make the case for the deal proposed (the JRP plan) being better for creditors than bankruptcy and majority were convinced.
It was a good read. I hope to post the translation of it here, with permission of Ob as he shared the link.
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