JV agreements normally have a solvency clause, so if manager goes broke they cease to be manager and can't operate the mine and make calls on other participants, so I believe HNC were well within their rights firstly to take over as manager but since they didn't anticipate events not prepared to do so at the time. Secondly CMR called in administrators in first instance and this triggered R&M appointment and is normal for a secured lender to do so.
Pre-emptive rights in JVs are normal so if CMR decides to sell their share HNC has usually 30 days to match the offer.
Agree would be good to get a copy of JV agreement.
CMR Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
