Midway Gold wins interim use of pre-bankruptcy lender cash collateral

By Kali Hays

New York, June 25 – Midway Gold Corp. received interim authorization to use the cash collateral of its pre-bankruptcy lenders on Thursday, according to an order from the U.S. Bankruptcy Court for the District of Colorado.

A final hearing is set for Aug. 4.

As previously reported, Midway and its lenders negotiated terms allowing for the consensual use of the company’s cash to maintain business-as-usual operations during the restructuring process.

The company said it believes its current and expected cash resources will be sufficient to pay ongoing expenses and maintain business operations during the pendency of its Chapter 11 cases, according to a prior news release.

Commonwealth Bank of Australia is the administrative, collateral and technical agent of the senior lenders, and Hale Capital Partners LP is the administrative and collateral agent of the subordinated lenders.

Midway, based in Vancouver, B.C., is a development-stage company that acquires, explores and develops gold and silver mineral properties in North America. The company filed for bankruptcy on June 22 in the U.S. Bankruptcy Court for the District of Colorado under Chapter 11 case number 15-16835.

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