Allied Nevada Gold reaches two agreements in principle to modify plan

By Caroline Salls

Pittsburgh, Aug. 19 – Allied Nevada Gold Corp. reached an agreement in principle with its official committee of unsecured creditors and an informal group of senior unsecured noteholders to modify the company’s Chapter 11 plan, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The proposed changes to the plan include the addition of a convenience class for holders of unsecured claims who opt to share in $3 million of cash, minus a reserve for fees and expenses to fund a creditor representative.

The amendments also include appointment of the creditor representative, who will be responsible for working with the reorganized company to object to/reconcile unsecured claims following the plan effective date and monitoring and consulting on any sale process Allied Nevada may launch after the effective date.

The proposed plan changes also call for the inclusion in the plan supplement of minority shareholder protections, an agreement that the reorganized company will use its best efforts to use its existing vendors after the effective date and an agreement that the creditors committee will obtain and support specified releases.

According to the notice, the creditors committee will support confirmation of the modified plan and will draft a solicitation letter recommending that holders of unsecured claims vote to accept it.

In addition, Allied Nevada said it and the noteholders’ group reached an agreement in principle with the official committee of equity security holders for the case.

Specifically, the equity committee agreed to support confirmation of an amended plan and not oppose any other Chapter 11 case issues.

The company said it intends to file modified versions of the plan reflecting the agreements before the Aug. 27 hearing on approval of its disclosure statement.

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

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