Replies to post #10411 on North American Palladium Ltd. (fka PALDF)

[MoneyMan]

They have until June 30th or current shareholders will be almost completely wiped out. Obviously market does not think a buyer is going to appear and save the day.

If no superior transaction emerges from the strategic review process by June 30, 2015, the terms of the Recapitalization will be as follows:

Conversion of all amounts owing to Brookfield into equity, resulting in Brookfield owning common shares representing 92% of the common shares outstanding on a fully-diluted basis after giving effect to the Recapitalization;

Conversion of the 2012 and 2014 convertible debentures into equity, resulting in holders of convertible debenture owning common shares representing in aggregate 6% of the common shares outstanding on a fully diluted basis after giving effect to the Recapitalization;

Existing holders of common shares will own 2% of the post-Recapitalization common shares outstanding on a fully-diluted basis;

The Company's outstanding warrants and options will be terminated;

After completion of the Recapitalization, the Company will undertake a $50 million rights offering to raise equity, pursuant to which all shareholders at that time will be able to participate;

The $50 million rights offering will be backstopped by Brookfield and other parties; and

Employees, trade creditors, equipment leases and suppliers will not be affected.