Allied Nevada Gold secures support agreement and DIP facility waivers

By Caroline Salls

Pittsburgh, Sept. 21 – Allied Nevada Gold Corp. obtained a waiver from required consenting holders of its C$400 million of 8¾% senior unsecured notes due 2015 and required secured lenders in connection with the company’s restructuring support agreement, according to an 8-K filed Monday with the Securities and Exchange Commission.

Specifically, the noteholders and lenders agreed to grant all waivers and consents necessary under the restructuring support agreement to waive a creditor party termination event arising as a result of the U.S. Bankruptcy Court for the District of Delaware’s order terminating the automatic stay for specified assets.

In addition, Allied Nevada said its majority debtor-in-possession lenders agreed to waive any default arising from non-payment of capital lease obligations and the lifting of the automatic stay.

The DIP lenders also agreed to waive any default arising solely from the company’s failure to complete construction of the Hycroft Demonstration Plant on time at a cost of no more than $2.5 million, provided that the waiver will cease to be effective if the construction is not completed by Oct. 12 for a cost of more than $3 million.

Allied Nevada is a Reno, Nev.-based gold and silver miner that filed for bankruptcy March 10, 2015. Its Chapter 11 case number is 15-10503.

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