The sale and investor solicitation process (SISP) for Canada’s Nemaska Lithium will get under way in late February, with a target of closing a transaction in mid-August, the company announced on Wednesday.

Nemaska is restructuring under the supervision of the Superior Court of Quebec and PricewaterhouseCoopers, as monitor of its business and financial affairs, after the company entered creditor protection last month.

On Wednesday, it obtained an order from the court approving the proposed SISP, which it intended to generate interest in either a recapitalisation of the corporation, or in the business or its assets.

Nemaska said procedures would start on February 28, with the transmission of a “teaser” letter to potentially interested parties. The deadline for submission of nonbinding letters of intent is April 17, 2020, with a target closing date of the transaction in mid-August 2020.

Meanwhile, Nemaska also said that it had reached an in-principle agreement with the Nordic Trustee to settle its court case with the holders of the senior secured bonds issued pursuant to the bond offering announced on May 10, 2018. The settlement provides that the company is released of its obligations towards the bondholders and obtains the discharge of the security which secured the bonds, in exchange for a lump sum payment of $30-million.

The company described the settlement, which still had to be approved by the bondholders, as “meaningful progress” in the restructuring efforts under the credit protection.

Nemaska in December moved to seek creditor protection, as the company continued talks with mine financier the Pallinghurst Group to secure up to C$600-million to advance the Whabouchi project, in Quebec.

With a deal yet to be announced, the company suspended operations in October and laid off 64 employees. On Monday, it let another 29 people go, leaving the organisation with only about 30 employees.

The project is facing cost overruns of about $300-million.