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Midway Gold Bankruptcy Settlement Filed

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Midway Gold filed with the U.S. Bankruptcy Court a motion to approve (i) a settlement agreement between Debtors and Dan F. Halstead and Son Trucking and (ii) to disburse funds.

The settlement notes, “The Settlement Agreement is reasonable, in the best interest of the estates under the Kaiser Steel test and was negotiated at arms-length and in good faith….While Debtors believe their case against Halstead is strong, the $4,000 settlement payment is less than the costs and delays associated with litigating the validity, extent and priority of the Halstead Lien and disallowance of the Proof of Claim. This factor therefore heavily favors approval of the Settlement Agreement. The Settlement Agreement is in the best interest of Debtors’ estates and their creditors. The professional fees and time saved by avoiding litigation will permit the Debtors to devote valuable resources to concluding these cases and maximizing return to creditors.”

Read more Midway Gold bankruptcy news.