Veris Gold foreign representative asks for closure of Chapter 15 case

By Kali Hays

New York, July 29 – Veris Gold Corp.’s foreign representative, Ernst & Young, Inc., asked the U.S. Bankruptcy Court for the District of Nevada to close the company’s Chapter 15 bankruptcy case, according to a Wednesday motion.

The Supreme Court of British Columbia discharged Veris’ Companies’ Creditors Arrangement Act (CCAA) proceeding on July 29, and the representative asked that this order also be recognized.

According to the motion, all of the company’s assets in the United States have been administered, and there are no further matters expected that will require assistance from the court.

As previously reported, the Nevada court recognized Veris’ Canadian asset sale to WBVG, LLC, an affiliate of its debtor-in-possession lender WBOX 2014-1 LLC.

The purchase price includes payment of Veris’ portion of closing costs and Nevada transfer taxes, plus cure costs and up to $1.8 million in priority charges. WBVG will also assume specified liabilities.

However, the company said WBOX 2014-1 will sell a majority interest in WBVG at closing to 2176423 Ontario Ltd., a company wholly owned by Eric Sprott. Sprott holds a royalty against the Veris debtors, and one of his wholly owned entities holds more than 20% of the equity in the Veris debtors, according to Thursday’s order.

Veris, a Vancouver, B.C.-based gold production company, filed Chapter 15 bankruptcy on June 9, 2014 under case number 14-51015.

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