Kumtor Gold seeks approval of $8 million DIP facility via Centerra

By Sarah Lizee

Olympia, Wash., Oct. 22 – Kumtor Gold Co. CJSC secured court approval to enter into an $8 million debtor-in-possession senior secured super-priority multi-draw term loan credit facility via Centerra Gold (KB) Inc., according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The company has the ability to request a $2 million increase to the commitments.

The facility will mature in 180 days.

Interest will accrue at a rate per annum equal to the U.S. Prime rate plus 300 basis points. At the company’s election, interest may be payable in kind, in which case, the interest payable will be added to and made part of the outstanding principal amount.

“The postpetition financing sought herein is essential to the debtors’ ability to run these Chapter 11 cases and pursue their reorganization efforts, including filing a viable Chapter 11 plan for the benefit of their creditors and interest holders,” the company said in its motion.

Bishkek, Kyrgyzstan-based Kumtor Gold is owned by Toronto-based Centerra Gold, a mining and exploration company. The Chapter 11 case number of Kumtor Gold is 21-11051. It filed bankruptcy on May 31.

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