According to the U.S. Bankruptcy Court docket, Allied Nevada Gold and 13 affiliated Debtors filed for Chapter 11 protection in the District of Delaware, lead case number 15-10503. The Company, which processes and produces gold and silver, is represented by Stanley B. Tarr of Blank Rome. The Company concurrently announced an agreement with certain holders of its 8 3/4% Senior Unsecured Notes due 2019 and its secured bank lenders to effect a reduction in the Company’s funded debt obligations and provide the Company with additional liquidity.
Under the proposed financial restructuring, which requires Court approval, Allied Nevada Gold’s trade creditors and vendors are expected to be paid in full. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with noteholders collectively owning or controlling in excess of 67% of the aggregate outstanding principal amount of the Company’s notes and its 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. Read more bankruptcy company news about ANV.