San Gold: Lenders expected to acquire assets, prompting bankruptcy

By Caroline Salls

Pittsburgh, May 28 – San Gold Corp. did not receive any third-party final bids by the deadline for its sale and investor solicitation process under the Bankruptcy and Insolvency Act (Canada), according to a Thursday news release.

As a result, the company said its secured lenders are expected to seek court approval for a transaction under which San Gold’s assets will be acquired by a nominee of the principal secured lenders in exchange for its secured debt.

If that happens, San Gold said it will have no ability to make a viable proposal to its creditors and will become bankrupt upon the expiration of a court-ordered stay period.

The stay period is scheduled to end on June 22, the release said.

San Gold is a Canadian producer, developer and explorer of gold with a mining complex located near Bissett, Man.

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