The Quebec government and commercial partner Pallinghurst Group are pledging up to $600-million to recapitalize Nemaska Lithium Inc. and vault the chemical company out of bankruptcy protection in a move that highlights the importance of vehicle electrification to the province’s economic strategy.
Nemaska has accepted a purchase offer structured as a credit bid from a group made up of Orion Mine Finance, its biggest secured creditor; Investissement Québec; and Pallinghurst, the Montreal-based company said in a statement Monday.
Pallinghurst is a U.K.-based mining and metals private equity investor that has also invested in Canadian graphite company Nouveau Monde Graphite.
The buyers are offering to assume at least $146.5-million in liabilities including claims owed to Orion, Nemaska said. Quebec and Pallinghurst have also signalled their intention to invest up to $600-million in a new company emerging from creditor protection, Nemaska said.
The sale caps months of uncertainty for Nemaska, whose plans for a hard rock mine and electrochemical plant in Quebec could create a new supply of lithium needed for rechargeable batteries in electric vehicles and mobile phones.
For the rest of this article: https://www.theglobeandmail.com/business/article-quebec-government-pallinghurst-pledging-up-to-600-million-to/