RE: Does17 Mar 2017 17:43
Jaf, indeed it should be priority on everyone's list.... except of course the AMCU. Allow me to put forward the following for consideration & discussion -
It's intriguing that initially an 'in principle agreement' with the AMCU had been agreed and only the IDC were waited upon. It's flip flopped due to IDC dragging their heels which led to material changes being sought by the AMCU. Finally the IDC have agreed to the restructuring plan & post commencement financing but have subjected their agreement to the proviso - "The IDC Agreement is also subject to entering into such an agreement with AMCU, unless otherwise waived by DCH".
The proviso contains an important addendum - "unless otherwise waived by DCH"; This is crucial as it allows DCH the right to waive an agreement with the AMCU in the event of a deadlock. That of course depends on my interpretation being correct? DCH current concern is for labour stability to avoid a compromise of effective repair & remediation thus it would be in best interest that the Practitioner, DCH & AMCU reach an amicable agreement, though such agreement is not a determining factor to proceed with publication of Business Rescue Plan to voted upon.
The following paragraph refers - "The IDC Agreement provides for a LDM PCF Loan to be made either in addition to or as a substitute for the Placing, the conditions for which have yet to be met. It is intended pursuant to the IDC Agreement that the BRP will in due course publish a Business Rescue Plan to be voted upon by the LDM creditors that will provide, inter alia, for DCH (and therefore the Company) to maintain its controlling shareholding in LDM and to seek sufficient additional, Phase 2, finance within 90 days of publication and to successfully conclude the Business Rescue process. The BRP may also continue to solicit expressions of interest for a strategic investor(s) in LDM". -
I would thus anticipate a published "BRP" to be voted on in the interim either prior to concluding negotiations, in conjunction with or without final AMCU agreement? Public interest score table applies and AMCU are inconsequential in terms of total affected parties vote. As stated previously, stability is a concern during repair & remediation and the most favoured outcome is to have all parties pulling in the same direction in order to achieve the same goal.
Look forward to your views. ATB
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