RE: This FM is a bigger issue than we think4 Jul 2023 19:42
If Canmax successfully cancel the prepayment agreement then the money paid becomes a debt.
Question is, can Canmax cancel the prepayment agreement while Prem is claiming Force Majeure? Prem say "no".
2nd question is, can Canmax have the FM claim thrown out or otherwise cancelled prior to Prem having the plant fixed and producing (or run out of cash entirely)? Prem have indicated not, they believe it'll take 12 months to arbitrate. Canmax may be thinking that they can cut that short if the FM claim is clearly bogus.
Don't think any of us have the answers to these questions really - it's down to lawyers now.