Midway Gold requests to extend interim cash collateral use to Nov. 6

By Mark Reccek

Bethlehem, Pa., Sept. 4 – Midway Gold Corp. requested court approval to extend its interim cash collateral use through Nov. 6, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Colorado.

The company previously received an extension through Sept. 18.

According to the motion, the company has successfully transitioned into Chapter 11 status, continued to preserve and maximize value by maintaining gold production at its Pan gold mine and worked cooperatively and communicated extensively with the secured parties, the committee and key suppliers and service providers.

“The debtors have made progress with their restructuring efforts and evaluating the best alternatives available to maximize value, but they require additional time and authority to use their cash collateral in order to finalize the terms for the consensual use of cash collateral on a final basis,” the motion said.

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.

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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