Midway Gold creditors committee gets OK to hire financial adviser

By Mark Reccek

Bethlehem, Pa., Aug. 20 – Midway Gold US, Inc.’s official committee of unsecured creditors received court approval to hire Gavin/Solomonese LLC as its financial adviser, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Colorado.

The hiring is retroactive to July 7.

According to the order, “the employment of Gavin/Solmonese as financial adviser to the committee is in the best interest of the committee and the debtors’ bankruptcy estates, and Gavin/Solmonese and its members and associates do not represent or hold any interest adverse to the committee or debtors’ estates.”

As previously reported, Gavin/Solomonese will:

• Analyze the company’s businesses, management, operations, properties, financial condition and prospects;

• Analyze the company’s historical financial performance and transactions;

• Review the assumptions underlying the business plans and cash flow projections for the assets involved in any potential asset sale or plan of reorganization;

• Monitor and report to the committee on the company’s near-term liquidity needs and operational changes;

• Analyze all contracts and/or agreements;

• Assist in the procurement of and assemble any necessary validations of asset values;

• Evaluate the company’s capital structure and make recommendations to the committee on Midway’s efforts to reorganize its business operations and/or confirm a restructuring or liquidating plan;

• Assist the committee in marketing the company’s assets; and

• Provide ongoing analysis of Midway’s financial condition, business plans, capital spending budgets, operating forecasts, management and prospects for future performance.

Gavin/Solomonese has agreed to a 10% reduction of its regular hourly rates, which range from $295 per hour to $650 per hour, the committee previously said.

Midway, 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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