Photo by: Reuters
TORONTO (miningweekly.com) – Gold producer Veris Gold was this week granted provisional relief under Section 1519 of the US Bankruptcy Code.
As of Wednesday, the ruling recognised the Canadian proceeding of the Companies' Creditors Arrangement Act (CCAA) and, as a result, protected Veris Gold's assets and the interests of the creditors until a ruling on the petition for recognition and Chapter 15 relief was granted.
The company has been operating under the protection of the CCAA since June 9, when the Supreme Court of British Columbia issued an order granting the company creditor protection, after Deutsche Bank (DB) London Branch declared payment defaults under the two forward gold purchase agreements between DB and the company.
The initial order appointed professional services firm EY as monitor of the company under CCAA protection.
The company’s Jerritt Canyon operation, in Nevada, would continue to produce gold during these proceedings and was cash-flow positive.