Eda Kopa Claim Disallowed By Monitor
Nautilus Minerals Solwara 1 joint venture partner Eda Kopa Limited has had its claim of US$50.8 (K172.8) million disallowed by the British Columbia Supreme Court appointed monitor PricewaterhouseCoopers (PwC) Canada.
This presents a setback for the state owned investment under Kumul Minerals Holdings Limited, as it seeks the unearned contribution claim during the Nautilus Plan of compromise and arrangement process catered for under the Canadian Companies’ Creditors Arrangement Act (CCAA).
According to documents from the monitor’s (PwC’s) status update as of August 28 last week, it referred to its Monitor’s Fourth Report, dated August 9, which called for a need for resolution with respect to Eda Kopa’s claims and CCAA proceedings.
Where the monitor disallowed the claim on the basis that Eda Kopa’s claim is an equity claim, and that the agreements between Eda Kopa and the Nautilus Group do not support any such claim.
The report also stated that on July 31, Eda Kopa sought to dispute the monitor’s disallowance by submitting a Notice of Dispute, however, according to the monitor the notice did not provide any new information to the Nautilus Group or the Monitor, and, accordingly, neither saw any basis for withdrawing or amending the disallowance of Eda Kopa’s claim.
According to the monitor on August 6, it and Nautilus received notice Eda Kopa retained Canadian counsel and filed for an appeal that is set for September 10 this month to hear Eda Kopa’s appeal of the disallowance of its claim.
A resolution to the matter is expected to be reached on or shortly after September 10.
According to the monitor’s update if a resolution cannot be achieved in both Eda Kopa’s claim through the CCAA process or its general relationship with Nautilus going forward then the plan will not be implemented resulting in no distribution to affected creditors as anticipated and the nautilus group restructuring will fail.
The CCAA plan was approved early in August at a meeting of affected creditors along with an acquisition plan by its main lender Deep Sea Mining Finance Limited would take over a number of the 44 entities registered under the Nautilus Group in nine jurisdictions around the world.
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