Ascot warns of potential CCAA filing as restructuring talks stall
Vancouver-headquartered Ascot Resources, owner of the Premier gold mine in British Columbia, has warned it may be forced to seek creditor protection after failing to finalise terms for a planned C$150-million private placement and secured creditor restructuring.
The company said on Monday that trading in its shares was halted on November 28 ahead of an expected announcement on pricing and other terms for the financing package first outlined on October 23. However, negotiations did not reach agreement and Ascot said it had "no additional information to announce at this time".
With structure and pricing still unresolved, Ascot said the private placement was no longer certain to proceed. Should the financing fail, the company would have to explore other options, including proceedings under the Companies’ Creditors Arrangement Act (CCAA), though it stressed there is no assurance that any alternative would be available.
Ascot reported a cash balance of C$1.9-million as of December 1 and expects to be able to fund current operations only until mid-December.
