Veris, which operates the Jerritt Canyon operation, in Elko County, Nevada, had been operating under the protection of the CCAA and the US Bankruptcy Code since June 9, last year, after defaulting. Veris Gold said the Supreme Court of British Columbia issued an order Monday granting “the company’s application for creditor protection under the Companies’ Creditors Arrangement Act. The temporary restraining order is in effect pending a full hearing of an application for recognition of the CCAA proceedings pursuant to Chapter 15 of the US Bankruptcy Code. As a result, United States creditors are restrained from taking action against the Company and the other CCAA Petitioners, including Veris Gold USA, Inc.
The sales process deadline for a potential bidder to deliver a qualified bid, as defined in the sales and solicitations procedures SSP included in the court's Sales Process Order, which had subsequently been extended, was January The company explained late on Tuesday that it was reviewing the results of the SSP in conjunction with Deutsche Bank and the debtor-in-possession lender Whitebox Advisors.
The monitor would provide a further update on these results in its next report to the Court. Mining Weekly is a product of Creamer Media. Advertising on MiningWeekly. Email advertising creamermedia. Menu Menu Search By. Veris Gold gets creditor protection extension. Au Pt Follow MiningWeekly. Password at least 8 characters required.
Make sure you don't miss any Law breaking news. Download our plug-in for Chrome to get customizable, real-time news alerts. According to court documents, the Vancouver-based company was forced into the filing in part by its recent default on gold purchase agreements with Deutsche Bank AG, and efforts to refinance the debt proved to be unsuccessful.
The existing payment terms to Deutsche Bank and the subordinated debt-holders have Stay ahead of the curve In the legal profession, information is the key to success. Access to case data within articles numbers, filings, courts, nature of suit, and more. Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc. Create custom alerts for specific article and case topics and so much more! Attached Documents Declaration. I'm Law's automated support bot. How can I help you today?
For example, you can type: I forgot my password I took a free trial but didn't get a verification email How do I sign up for a newsletter? Your password will be sent to this address. Veris said it was forced to start CCAA proceedings after the company failed to complete restructuring or refinancing efforts. Veris said that it sought protection to address near term liquidity issues owing to a decreasing gold price, higher than expected production costs, demands for payment under existing loan agreements and unexpected shut downs, including the January shutdown resulting from a December fire.
The TSX-listed stock of the North American miner lost more than half its value in January, when the miner first revealed that it had defaulted on the two forward gold purchase contracts. The midtier company said it had failed to make the monthly December gold delivery, or pay the cash equivalent of the gold delivery shortfall. This was the result of an electrical accident, resulting in a fire that occurred in the primary crushing building at the Jerritt Canyon mill operations.
The fire resulted in a temporary suspension of operations, which negatively affected output during December. Veris said the forward gold purchase contracts with DB did not contain a force majeure provision that would have allowed Veris to temporarily suspend its obligations under the contracts owing to circumstances beyond its control.
Mining Weekly is a product of Creamer Media. Advertising on MiningWeekly. Email advertising creamermedia. Menu Menu Search By. Veris Gold files for bankruptcy protection in Nevada and BC.