Veris Gold court extends provisional relief from predatory creditors

By Kali Hays

New York, July 23 – Veris Gold Corp. will continue to receive provisional relief preventing execution against the company’s assets located in the United States, according to a Wednesday order with the U.S. Bankruptcy Court for the District of Nevada.

Without the provisional relief the order said “there is a material risk that the debtors’ assets could be subject to efforts by Deutsch Bank or other creditors or other parties in interest in the United States to control or possess the assets located in the United States or take other detrimental business acts against such assets.”

“Even the threat that Deutsch Bank could attempt to exercise remedies against the debtors in the United Sates could have an immediate and irreversible effect by forcing a shut-down of the debtors mining operations.”

Such acts would “interfere and cause harm” to the court’s mandate under Chapter 15 of the Bankruptcy Code and interfere with the foreign representative’s ability to “achieve an equitable result for the benefit of all creditors,” according to the order.

Objections of Deutsch Bank were overruled at the hearing.

The protections under the order will remain effective until an additional order is entered recognizing Veris’ Canadian proceeding as a foreign main proceeding or a non-main proceeding.

The company has been operating under Canada’s Companies’ Creditors Arrangement Act protection and Chapter 15 bankruptcy since June 9.

Veris is a Vancouver, B.C.-based gold production company. The Chapter 15 case number in the U.S. Bankruptcy Court for the District of Nevada is 14-51015.

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