Allied Nevada seeks OK of $17.5 million bid for exploration assets

By Kali Hays

New York, June 15 – Allied Nevada Gold Corp. is seeking approval of a $17.5 million sale of its exploration properties and related assets to stalking horse bidder Clover Nevada LLC, according to a Monday notice with the U.S. Bankruptcy Court for the District of Delaware.

Allied said that it received no other qualified bids by a June 12 deadline and a hearing to approve the sale to Clover is set for June 18.

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 was not the high bidder, it would have been entitled to a $350,000 breakup fee and reimbursement of up to $100,000 of its sale-related expenses, under the stalking horse agreement.

In addition, Allied’s hearing to approve the disclosure statement related to its proposed plan of reorganization has been adjourned to July 18 from June 16.

The company filed the plan and disclosure statement, which contemplates a financial and operational restructuring, on April 24.

Allied’s official committee of equity security holders objected to the disclosure statement on June 2, claiming that the company’s going-concern valuation is billions of dollars below what it should be.

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.