if hnc improve plant

If we get an indication HNC can turn things around expect:

DOCA terms:

- Trade creditors to be paid out and resume supply on normal trading account terms.

- Note holders various options:
a) Discount offer for their debt
b) Convert debt to equity in CMR
c) Defer repayment on a pay when we can basis. Interest can be a balloon payment at end subject to available cash.

- HNC to convert debt (US10M plus additional funds provided to fully commission plant) to equity in CMR.

I would say HNC are embarrassed at the amount of money they have put in and want to save face back home by turning it around.
HNC are funding the on going requirements to see if it can be saved, this is not costing other creditors anything but time.

Issues they face is will plant perform to expectations and how much to fix it if replacement is required for non performing sections, assuming the design is workable to start with.
Metallurgical recoveries - are they getting the desired level of recoveries, with a polymetallic ore body you have to get flow process right and achieve recoveries envisaged as slippage is your margin down the drain at best and losses at worse.

Trust this gives some an idea of what to look for going forward.