Declaration of Force Majeur is a common thing. The ability to declare would have been part of the contract e.g. sale of product between PAN and the other party(s) to the contract to supply.
When an occurrence beyond the control of one of the two parties restricts the ability of that party to comply with its' obligations to the contract a Force Majeur may be declared. It protects the company and at the same time (I might be wrong here) maintains the existence of the contract. i.e. the other guy can't get out of the deal...for a while. Bit like having a building contract to be finished by a certain date.....subject to lost wet days, days lost due to strike, time lost due to failure to supply materials, etc. Force Majeur covers other stuff. I once built a boat in New Orleans, we declared Force Majeur due to a Hurricane.
IMO there is not really any need for the red ! beside the announcement as it really is a big Cover Your Donkey.
Cheers,
Stu
PNA Price at posting:
$1.93 Sentiment: LT Buy Disclosure: Held
