Allied Nevada secures waiver of DIP facility defaults until June 23

By Caroline Salls

Pittsburgh, June 12 – Allied Nevada Gold Corp. obtained an additional default waiver from its majority debtor-in-possession financing lenders that runs through 6 p.m. ET on June 23, according to an 8-K filed Friday with the Securities and Exchange Commission.

Specifically, the lenders said the company’s failure to comply with budget delivery, total ounces gold sold and total ounces gold equivalent sold covenants for specified dates will not constitute a default or an event of default during the waiver period.

Also under the waiver, the requirement for the delivery of an update to Allied Nevada’s approved budget currently in effect has been extended to June 23, with any subsequent updates due on the Thursday of every fourth week after that date.

The waiver also limits the company’s ability to request additional drawdowns under the DIP credit agreement during the waiver period, the 8-K said.

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.

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