Midway Gold granted interim access to cash collateral

By Mark Reccek

Bethlehem, Pa., Aug. 13 – Midway Gold Corp. received interim authorization to access the cash collateral of its pre-bankruptcy lender, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Columbia.

Commonwealth Bank of Australia is the administrative, collateral and technical agent of the senior lenders, and Hale Capital Partners LP is the administrative and collateral agent of the subordinated lenders.

“The debtors have an immediate need to use the cash collateral to permit among other things, the orderly continuation of the debtors’ businesses, to maintain and generate the confidence of the debtors’ customers and vendors, and to preserve the going concern value of the debtors,” the court filing said.

As previously reported, Midway and its lenders negotiated terms allowing for the consensual use of the company’s cash to maintain business-as-usual operations during the restructuring process.

The company said it believes its current and expected cash resources will be sufficient to pay ongoing expenses and maintain business operations during the pendency of its Chapter 11 cases, according to a prior news release.

A final hearing on the matter is scheduled for Sept. 11.

Midway Gold, based in Vancouver, B.C., is a development-stage company that acquires, explores and develops gold and silver mineral properties in North America. The company filed for bankruptcy on June 22 under Chapter 11 case number 15-16835.

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