Pau,

It seems JJ touched a sensitive area by saying that GR and VZ need the mining data. To me, this is beyond self-evident, but I can understand the seeds of doubt about this, since the data is worth hundreds of millions of dollars. And what is worth hundred of millions to the shareholders may be considered a lost opportunity by somebody else.

One way or another, we will find out soon enough the answer to the mining data question, since KRY is not going to be in bankruptcy forever. And when this happens, there will need to be a full accounting of assets and liabilities and how these will be settled. If by then the mining data has not been converted into money to be distributed to the shareholders, it and any other unrealized asset will become the company’s residual value, which, by law, is the property of the shareholders. This generally includes both tangible and intangible assets. I recently came across a publication on the Canadian CCAA by one of the top law firms in the world that indicated that the benefit from accumulated tax losses is one type of such intangible assets that represent potential shareholders’ recoveries in Canadian bankruptcy proceedings.  KRY has accumulated hundreds of millions of tax-loss carry-forward.

By the way, KRY already appointed Justice Newbould (yes, the retired Justice that presided over the KRY CCAA case before Justice Hainey) as the Claims Officer and issued a proposal to the CCAA Court for the order to initiate the claims process (see the motion returnable Oct. 29, 2018). So, as soon as the Court approves this order, everybody that has a claim against the company and / or its Directors & Officers (D&O) will have the right to file a claim. A claim on the residual company assets is an equity claim that every shareholder has a legal right to claim.

We can certainly expect the Shareholders’ Committee or other interested parties to file an equity claim on these residual assets as soon as the claims process begins.