MEDIA / Solv-Ex Still Wrestling With Its Creditors
Fort McMurray Today
More than $28.2 million in claims from Canadian creditors have been received by Solv-Ex Corporation, but the troubled oilsands developer says it's willing to acknowledge less than half of that amount -- approximately $12.8 million Cdn.
When Solv-Ex first filed for court protection from its Canadian creditors in mid-July, the New Mexico-based company acknowledged $3.5 million US of liens were filed against its experimental oilsands site north of Fort
McMurray and about $7.3 million US. in unsecured claims. Recent court documents filed by Calgary-based Price Waterhouse, an accounting firm appointed by the Canadian court to look out for Canadian creditors, show of the $12.8 million Cdn Solv-Ex says it'll pay, approximately $6.5 million Cdn are secured claims and $6.2 million Cdn are unsecured.
South of the border, the number of US claims against Solv-Ex total more than $39.4 million US.
But Solv-Ex has agreed to approve only a fraction of those unsecured claims -- $480,037 US -- saying it doesn't recognize claims totalling about $38.9 million US.
The current claims listed in the report doesn't include a $33-million US convertible debenture from a European company called PheMex Establishment.
The court document filed in the Calgary Court of Queen's Bench indicates
Solv-Ex continues to "negotiate and reach settlements with claimants."
About 40 claimants haven't contested their disallowance since Dec. 9, said the report, while 50 have settled and the remainder of the claims will be reviewed in American or Canadian proceedings.
The documents also show that mediations will be conducted in Edmonton, Calgary and Fort McMurray to settle claims worth less than $20,000. Details of the how this will work haven't been announced, but more information is expected to be made public in late January.
"We return to court Jan. 27 to deal with claims issues," Price Waterhouse spokesperson Julie Murray said Monday.
If negotiations fail to be reached with claimants owed more than $20,000, Murray said the court will ultimately decide the claim amount.
Associated Engineering of Edmonton said Solv-Ex owes it in excess of $1 million. In early November, the company was one of many approached by a New York company offering to buy the debt. Gord Lehto, Associated's vice-president of industry, said the company declined that offer.
"We are waiting for the purchase by Koch," he said. Lehto said Solv-Ex has approved a"substantial portion" of the engineering firm's claim.
Solv-Ex had protection for its Canadian creditors extended from Nov. 30 to Feb. 15. Further extensions will require the court's permission.
Calgary-based Koch Exploration of Canada is in the process of buying Solv-Ex's assets for $30 million.
It's not know what will happen if the approved claims from creditors exceed $30 million.
Under offer to purchase Solv-Ex, Koch would own a 78-per-cent share of the company. Solv-Ex retains a 12-per-cent share and United Tri-Star Resources Ltd. of Toronto will hold 10 per cent.
Koch Exploration is a subsidiary of Koch Industries, based in Wichita, Kansas, one of the largest privately held corporations in North America. |
