Lets see this:
Nexant valued Sarnia assets at $29.3 (CAD) including Scrap Steel of $8.9(CAD)---this is distressed liquidation value. (see 1st monitor report)
&
Comparison to sale in bankruptcy 53. Monitor is of the view that a sale of the Company's assets in a bankruptcy would result in inferior recoveries to the Visolis Transaction. (monitor six report)
So, monitor was in a view that it was not able to sell the scrap worth around $6M (USD) (forget other assets) at more than $4M and the judge and the creditor were convinced that $4M was the best they could get.
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When the purpose of CCAA ((allowing the company to restructure its financial affairs, through a formal Plan of Arrangement, the CCAA presents an opportunity for the company to avoid bankruptcy and allows the creditors to receive some form of payment for amounts owing to them by the company) failed , this should have terminated CCAA and liquidated. and gone back to Delaware. Clearly this did not happen as Monitor (in good faith or whatever) thought 4 M is all they can recover.
Now when the Sarnia's asset is gone, at least the Canadian court should wrap up the proceeding and discharge the monitor and sent the matter back to Delaware, where the US court can see what happened and at least not buy everything that monitor recommends.
(and for those who think they can get more from Visolis transaction keep dreaming lol)
AI
