06:00:07 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Allied Nevada Gold Corp
Symbol ANV
Shares Issued 125,983,252
Close 2015-03-09 C$ 1.08
Market Cap C$ 136,061,912
Recent Sedar Documents

Allied Nev. files for Chapter 11 bankruptcy protection

2015-03-10 06:56 ET - News Release

Mr. Randy Buffington reports

ALLIED NEVADA TO IMPLEMENT FINANCIAL RESTRUCTURING

Allied Nevada Gold Corp. has agreed with certain holders of its 8.75-per-cent senior unsecured notes due 2019 and its secured bank lenders to effect a reduction in the company's financed debt obligations and provide the company with additional liquidity. In order to implement this financial restructuring, Allied Nevada and certain of its domestic direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware today. Allied Nevada will continue to operate its business as a "debtor in possession" under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the bankruptcy code and the orders of the bankruptcy court. Under the proposed financial restructuring, which requires bankruptcy court approval, Allied Nevada's trade creditors and vendors are expected to be paid in full.

In conjunction with the Chapter 11 filing, Allied Nevada entered into a restructuring support agreement with noteholders collectively owning or controlling in excess of 67 per cent of the outstanding principal amount of the company's notes and the company's secured bank lenders. In this agreement, the supporting noteholders and secured bank lenders committed to support the restructuring transaction, which includes a restructuring of the company's debt and equity (which consists of the company's common stock and existing warrants to purchase common stock).

The company and the supporting noteholders have also agreed on a $78-million debtor in possession secured credit facility. The company plans to use this DIP financing to maintain business-as-usual operations during the restructuring process. The company believes its current and anticipated cash resources will be sufficient to pay its expenses and maintain its business operations during the pendency of its Chapter 11 cases.

The company has filed customary first-day motions with the bankruptcy court, which, if granted, will help ensure a smooth transition to Chapter 11. The motions are expected to be addressed promptly by the bankruptcy court.

Allied Nevada's legal counsel is Akin Gump Strauss Hauer & Feld LLP and its financial adviser is Moelis & Company. Legal counsel to the holders of the notes that are parties to the restructuring support agreement is Stroock & Stroock & Lavan LLP and their financial adviser is Houlihan Lokey. Wachtell, Lipton, Rosen & Katz and Paul Hastings LLP are legal counsel to the secured bank lenders, and the secured bank lenders' financial adviser is RPA Advisors.

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