Midway Gold disclosure statement approved; plan hearing set for May 2

By Caroline Salls

Pittsburgh, April 3 – Midway Gold Corp. received court approval of the disclosure statement for its second amended plan of liquidation, according to a company news release.

The plan confirmation hearing is scheduled for May 2.

The assets available for distribution under the plan include cash on hand, remaining assets, retained causes of action and all other assets transferred to a Midway liquidating trust.

A liquidating trustee will be appointed to administer the plan and serve as the representative of the company’s estate for the purpose of liquidating any remaining assets, prosecuting any retained causes of action and otherwise winding up the bankruptcy cases.

Administrative claims, priority tax claims and priority non-tax claims will be paid in full.

Holders of senior agent secured claims will receive cash collateral not previously distributed and a share of proceeds.

Holders of mechanic’s lien claims will recover 77.5% of the principal amount of the claims.

Holders of general unsecured claims will receive a share of a claims reserve and net proceeds from causes of action.

Holders of equity interests and subordinated claims will receive no distribution.

Based in Vancouver, B.C., Midway Gold 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, 2015 in the U.S. Bankruptcy Court for the District of Colorado under Chapter 11 case number 15-16835.

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