Chapter 11 Reorganization Summary
On March 9, 2015, 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. This was done to allow us to implement an agreement that was reached with certain holders of its 8.75% senior unsecured notes due 2019 (the “Notes”) and its secured bank lenders to effect a reduction in the Company’s funded debt obligations and provide the Company with additional liquidity.
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 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 (DIP) 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.
Chapter 11 Reorganization Documents
- Press Release
- 8-K (link to EDGAR filing, contains additional information)
- Notice of Filing of Syndication Procedures
- Disclosure Statement (filed 04.24.15)
- Plan of Reorganization (filed 04.24.15)
For more information, you may refer to http://cases.primeclerk.com/AlliedNevadaGold, the Company’s chapter 11 reorganization information website. In addition, you may call our Restructuring Information Hotline at (855) 936-2883 or (917) 606-6435 with any further questions.