Allied Nevada bid procedures, $17.5 million stalking horse deal OK’d

By Kali Hays

New York, April 24 – Allied Nevada Gold Corp. obtained court approval of bid procedures and a stalking horse agreement with Clover Nevada LLC for the proposed sale of its exploration properties and related assets, according to a March 31 filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the purchase price under the stalking horse agreement will be comprised of a $17.5 million cash component and up to the $65,000 the selling Allied Gold debtors posted for any seller security that is transferred to the buyer.

If Clover Nevada is not the high bidder, it will receive a $350,000 breakup fee and reimbursement of up to $100,000 of its sale-related expenses, under the stalking horse agreement.

Competing bids are due by 5 p.m. ET on June 12 and must provide for consideration equal to the stalking horse bid purchase price, plus the amount of the breakup fee and expense reimbursement, plus a $250,000 overbid amount.

An auction will be held on June 16, if Allied receives one or more qualified bids.

Allied Nevada is a Reno, Nev., gold and silver miner that filed for bankruptcy on March 10. Its Chapter 11 case number is 15-10503.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.