Veris Gold granted approval of $12 million DIP loan, U.S. recognition

By Caroline Salls

Pittsburgh, Oct. 7 – Veris Gold Corp. received U.S. court recognition and approval of a $12 million debtor-in-possession facility obtained as part of its Companies’ Creditors Arrangement Act case, according to a Monday filing with the U.S. Bankruptcy Court for the District of Nevada.

Veris said the revolving loan will finance the continuation of its business and operations.

The Supreme Court of British Columbia was expected to approve the DIP financing request at an Oct. 3 hearing, the motion said.

WBOX 2014-1 Ltd. is the DIP financing lender.

Interest will be 12%, with 9% payable in cash and 3% payable in kind.

The facility will have a six-month term, subject to one three-month extension.

The company said it will pay a $240,000 commitment fee and a standby fee of 6% of the unused portion of the loan.

The company has been operating under CCAA protection and Chapter 15 bankruptcy since June 9.

Veris is a Vancouver, B.C.-based gold production company. The Chapter 15 case number is 14-51015.

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