The move comes less than a month after copper prices reached a new all-time high.
Ultimately the company could not arrange funding from its major stakeholders, Pala and Mercuria Energy. Pala holds a 57 percent stake in the company, while Mercuria owns a 17 percent interest.
Albanese noted that the restructuring process will aim to preserve and protect the company’s assets.
To maintain liquidity during the restructuring period, Nevada Copper has secured a commitment for US$60 million in debtor-in-possession (DIP) financing, with US$20 million requested for immediate use.
This financing is also intended to support employees and vendors during bankruptcy proceedings.
In conjunction with the Chapter 11 filing, Nevada Copper is requesting court approval to continue paying employee salaries and wages and to maintain employee benefits programs.
The company will operate as a DIP, taking steps to maximize the value of its assets under the court’s guidance.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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