Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds / Materials

Allied Nevada Gold Plan Effective

Allied Nevada Gold's Amended Joint Chapter 11 Plan of Reorganization became effective and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on October 8, 2015. Highlights of the Plan include the following: As a result of the financial restructuring, the Company eliminated approximately $447.7 million of debt and related interest payments from its balance sheet. The Company closed two financings: a $126.7 million first lien term loan credit agreement and $95 million of second lien convertible notes. The credit agreement proceeds were used to repay the Company's outstanding loan obligations related to its revolving credit agreement and the amounts owed under the Company's diesel and cross-currency swap arrangements. The proceeds from the issuance of the convertible notes were used to pay back the Company's debtor in possession financing facility and certain other payments required under the Company's Plan. Remaining proceeds after such payments will be used for ongoing corporate needs. Existing unsecured notes and general unsecured claims have been canceled and holders of such claims received equity in the reorganized Company or cash in amounts negotiated by the major creditor groups. The Company has issued 3 million new common shares to its creditors, but does not plan to list the new common shares for public trading at this time or to remain as a reporting company with the SEC. Previous equity shareholders of the Company will receive warrants with a 7-year term that represent 17 1/2% of the outstanding new common shares. A new Board has been put in place with strong financial and technical backgrounds. In connection with its restructuring, the Company changed its corporate name to Hycroft Mining Corporation to emphasize its focus on the development of the Hycroft gold and silver operation located near Winnemucca, NV. This mining and exploration Company filed for Chapter 11 protection on March 10, 2015, listing $1.5 billion in pre-petition assets.

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