Allied Nevada equity committee eyes denial of exclusivity extension

By Kali Hays

New York, July 8 – Allied Nevada Gold Corp.’s official committee of equity security holders said that the company’s request for a four-month extension of its exclusive plan filing and solicitation periods is not necessary and should be denied, according to a Tuesday objection with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company asked that its plan filing period be extended through Nov. 5 from July 8 and its solicitation period to Jan. 4, 2016 from Sept. 6.

Allied said that it is in negotiations with its main creditor constituencies related to the revision of the valuation analysis that the current plan is based on with the intention of filing a revised plan “in the near term.”

The committee said that the current status of negotiations does not support the requested extension, that creditor negotiations overall “have now ceased” and that formulation of a revised plan is now underway.

“Indeed, the only negotiations between the equity committee and the debtors has been in connection with certain discovery served by the equity committee,” the objection stated. “Debtors’ lack of interest in engaging in substantive negotiations with the equity committee demonstrates that an extension of the exclusive periods to enable debtors to negotiate a revised plan is unnecessary.”

The committee went on to say that Allied has failed to “formulate a feasible plan” in the six months it has had to negotiate and file a plan and that any claims of progress are “without merit.”

A hearing to consider the extension is set for July 14.

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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