Midway Gold Corp. will file voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado. Midway will seek ancillary relief in Canada pursuant to the Companies’ Creditors Arrangement Act in the Supreme Court of British Columbia in Vancouver, Canada.
The company intends to restructure its business by attempting to sell noncore assets and resolving various challenges relating to Midway’s main asset, the Pan mine project. The debtors believe that additional time and resources are necessary to successfully maximizing value at the Pan mine. In its restructuring, Midway will be able to explore alternatives to strengthen the company, while addressing the challenges it has faced.
Midway 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.
The company and its lenders have negotiated terms that should allow for the consensual use of the company’s cash, which will allow the company 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 ongoing expenses and maintain its business operations during the pendency of its Chapter 11 cases.