Veris wins U.S backing of $3 million loan increase to aid operations

By Kali Hays

New York, May 6 – Veris Gold Corp. obtained recognition and enforcement from the U.S. Bankruptcy Court for the District of Nevada of a $3 million increase to the company’s $12 million debtor-in-possession facility that received approval from the Supreme Court of British Columbia on April 24, according to a Tuesday order.

As previously reported, Veris obtained the initial DIP loan as part of its Companies’ Creditors Arrangement Act case and received U.S. court recognition of the loan on Oct. 7, 2014.

The company’s foreign representative said that Veris’ DIP lender, WBOX 2014-1 Ltd., had “renewed discussions” with the company’s court-appointed monitor regarding a “potential transaction that would involve a financial partner” and that the financing will be used to ensure the continuation of Veris’ Nevada operations.

Veris has “no alternate source of financing” and “would be forced to cease operations” without the proposed loan increase, according to the motion.

Under the revised DIP agreement, the facility is set to mature on July 1 unless an extension is agreed upon in writing.

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

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

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