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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: roger fontaine who wrote (1648)	3/20/1999 1:44:00 PM
From: tom shelby	Read Replies (1) \| Respond to of 1706

$100,000 per month for insurance for six persons! That is outrageous. What are they being insured against?

To: roger fontaine who wrote (1648)	3/25/1999 9:26:00 PM
From: roger fontaine	Read Replies (3) \| Respond to of 1706

Court gives Royal Oak one more week Approves cash infusion to keep gold miner going, allows creditors time to draw up financial restructuring plan Thursday, March 25, 1999 ALLAN ROBINSON Mining Reporter Toronto -- Royal Oak Mines Inc. has been given a cash infusion by its principal lender that will allow it to continue operating until next Thursday, by which time its creditors must come up with a workable proposal for a financial restructuring. "So you are the carcass," Mr. Justice James Farley told Royal Oak's lawyer, referring to the creditors circling the company. The company is burdened with $600-million in debt and is under court protection from creditors. Royal Oak had wanted enough cash to allow it to keep its Kemess gold and copper mine in British Columbia going for another four weeks and to give it time to come up with a financial restructuring plan. The senior note holders, who are in the most perilous position among the creditors, are engaged in talks with the other lenders. However, Trilon Financial Corp.,Royal Oak's benefactor and secured creditor, was willing to provide only $2.1-million to $3.5-million, which is about what PricewaterhouseCoopers Inc., the court-appointed monitor, estimates Royal Oak will need during the next seven days. Royal Oak, a Canadian company based in Kirkland, Wash., has only $400,000 left from Toronto-based Trilon's initial emergency cash injection of $8.4-million in mid-February. Its main gold mine is the Kemess in British Columbia. It also has mines in Timmins, Ont., and Yellowknife. Bank of Nova Scotia asked Judge Farley of the Ontario Court's General Division yesterday to appoint an interim receiver, but he ruled that the additional financing proposal that would give Royal Oak another week was appropriate. "I would counsel all those involved to use the next week very efficiently and effectively," Judge Farley told the court. "It would be unfortunate if material progress in this case were not demonstrated from here on in." Michael MacNaughton, a lawyer representing the Unofficial Committee of the Senior Secured Subordinated Noteholders, told the court his group is behind a proposal that could lead to a financial restructuring of Royal Oak. But the noteholders, who are owed $175-million, are last in line among the creditors. Sitting ahead of them is Trilon, which is owed more than $120-million (U.S.), three banks owed $33-million (Canadian) and holders of construction liens. Sarah Pepall, a lawyer for Scotiabank, told the court that Royal Oak estimates it will need additional financing of $25-million to $30-million as part of a financial restructuring, compared with its original estimate of $16.2-million. Scotiabank is owed $5-million (U.S.), less than 1 per cent of the outstanding debt. "The bank is skeptical that this adjournment will produce anything," she said. Royal Oak's management said in a report filed with the court this week that it expects its tailings dam at the Kemess mine to meet the standards set by the B.C. government's Ministry of Energy and Mines. The ministry said that if Royal Oak was not in compliance by March 29, the mine would be shut down.