General Discussion Topics, page-134468

Surely you guys understand the capital and corporate structure we have???

The entity that "fails" is North American Lithium (NAL). It is the operating company, and if any debt taken on, it would be a this level and non-recourse the parent companies. NAL is 100% owned by SYQ

Now SYQ (NOT SAYONA and NOT PIEDMONT) provides cash to operate NAL. Initial funding was equity contributed by SYA and PLL. It was hoped that at higher prices, positive operating cash flow would provide the capital to continue operating NAL. That's not happening and so SYQ is tapping SYA and PLL for cash. If that doesn't happen then SYQ says to NAL .... no more cash to give and NAL fails and gets liquidated to pay any creditors. SYQ may fail but not necessarily. Even if SYQ fails, both SYA and PLL have wholly owned subsidiaries which hold their equity interest in SYQ ... no cross company guarantee (at least not in PLL). All that means is the holding company has a worthless asset as creditors would try a claim it.

I don't understand why you guy think the parents fail. Both PLL and SYA were in business before NAL restarted without any revenue (reliant on equity to fund the business).

Also PLL gets actual cash flow ... it pays SYQ to buy spodumene and then sells it (lets say under OTA). When it pays SYQ that cash REMAINS in SYQ it does not flow to SYA (despite what others suggest). And the JV 50% of production .... that also stays in the JV and flows to neither SYA or PLL until such time as SYQ decides to pay a distribution to its equity partners (actually I think it might even be accounted for as a loan by SYA and PLL to SYQ).