Canada’s Nemaska Lithium (TSX: NMX) has filed for creditor protection, following several months attempting to find new investors and continue operations, amid an oversupply of the metal needed in the batteries for electric cars and high tech devices that is squeezing the market.
The Montreal-based company said it had received approval to
apply to the Superior Court of Quebec for creditor protection under the
Companies’ Creditors Arrangement Act (CCAA) from its board of directors.
Under CCAA, the firm anticipates to conduct a review of its operations and to seek approval from the courts for a formal investor solicitation process. Through the process, Nemaska aims to source additional financing, sell assets, enter a joint venture, or a combination of those options.
More to come…
Written by Cecilia Jamasmie.
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