News: PDN Paladin Energy resolves to arbitrate against CNNC Overseas Uranium Holdings, page-2

Well, we have finally got a bit more clarity, something we should of got last time, instead we got a legalise announcement. Clearly PDN has not commenced any valuation process. This whole issue seems to revolve around the definition of what constitutes "event of default". Does anyone have copy handy of the LHM shareholders agreement? Regardless, it is difficult to see how under any legal definition, even banking defintion that a "default" has occurred. This is not a positive for CNNC. Is CNNC operating under a different set of definitions? That would be very strange. Perhaps as many posters have mentioned previously this has been nothing more than a play by CNNC to try to pick up LHM. On the positive side PDN has support from the majority of bond holders and other stakeholders which is very good news. What is also enlightening here is the statement " CNNC's repeated refusal to fund working capital requirements of LHM" This is a fascinating statement and raises significant questions concerning CNNC regarding its liability. I would say CNNC's position is not that powerful nor are they in the box seat here. Lets wait and see, i would say PDN based on what has been disclosed has got a very good chance of succeeding in arbitration. Unless there something very specific not disclosed allot of these aribritation tribunals take a dim view of naferious actions by parties that damage stakeholders based on a weak basis. We have to wait and see, but this is definitely somewhat positive and it still doesnt rule out other deals being agreed to.