Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Al Cern who wrote (1671)	4/16/1999 7:12:00 PM
From: robar	Read Replies (1) \| Respond to of 1706

Friday April 16, 6:18 pm Eastern Time Canada court appoints interim receiver for Royal Oak TORONTO, April 16 (Reuters) - Gold miner Royal Oak Mines Inc. (Toronto:RYO.TO - news) edged closer to the brink on Friday when a Canadian court appointed an interim receiver to oversee the financially troubled company's assets. Justice James Farley of the Ontario Court authorized an interim receiver to look at selling off Royal Oak's mining assets, but rejected a request by main lender Trilon Financial Corp. (Toronto:TFCa.TO - news) for a fast, piecemeal liquidation of assets. Trilon is owed almost C$200 million by Royal Oak. ''It is appropriate, just and reasonable to appoint an interim receiver,'' Farley said in his ruling. Kirkland, Washington-based Royal Oak has been devastated by falling gold prices and problems surrounding the construction of its new Kemess gold mine in British Columbia. It had struggled for months to negotiate flexible financing for more than $320 million in debt. The court's decision, however, left open the possibility the company could survive. It remains under the Companies Creditors Arrangement Act, a Canadian law under which firms are protected from creditors while they attempt to restructure. ''The possibility of restructuring will still exist,'' said a Royal Oak lawyer. But analysts said the company faced an uphill battle to survive in an environment of weak gold prices even if it escaped receivership. Gold, historically a hedge against financial uncertainty and international crisis, fell last summer to 18-year lows near $270 an ounce from a 1997 high of $363.95 an ounce. The precious metal traded at $283.60 an ounce on Friday. Royal Oak shares traded at C$0.065 a share on Friday on the Toronto Stock Exchange. ($1=$1.48 Canadian)