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Gold/Mining/Energy : Highwood Res. Ltd (T.HWD, HIWDF)
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To: kidl who wrote (102)4/9/1999 8:49:00 AM
From: kidl  Read Replies (1) of 147
 
For Friday, April 9, 1999
Royal Oak lenders aim to auction assets
Court monitor's report
By KEITH DAMSELL
The Financial Post
The creditors of Royal Oak Mines Inc. are preparing to auction off its assets but there's disagreement on whether or not the troubled gold company should be pushed into bankruptcy first.
PricewaterhouseCoopers Inc. has developed an "alternative restructuring plan" that proposes the asset sale, notes the court-appointed monitor's April 8 report to the Ontario Court.

Cost overruns at the company's Kemess South mine in northern British Columbia and the poor price of gold forced Royal Oak to file for bankruptcy protection in February. The owner of four gold mines across Canada has more than $600-million in liabilities.

First secured creditor Trilon Financial Corp. and Bank of Nova Scotia have both lost faith in the company's ability to restructure operations and asked the court last week to spin the company into receivership.

In a bid to solve the crisis, PricewaterhouseCoopers has been meeting with the company's creditors since April 1 to find support for its plan. Gold hedge lenders, a collection of three banks owed about $49-million, and senior note holders, owed $278-million, "have expressed support for the plan" but differ on whether or not the monitor should begin the asset sale or the company should be placed in receivership.

Lawyers representing the company's long list of creditors will meet in a Toronto court room today to secure emergency financing to last until April 18.

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