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Midway Gold’s revised plan of liquidation takes effect as of Dec. 6
By Caroline Salls
Pittsburgh, Dec. 7 – Midway Gold Corp.’s revised second amended plan of liquidation took effect on Wednesday, according to a notice filed with the U.S. Bankruptcy Court for the District of Colorado.
The plan was confirmed on Nov. 15.
As previously reported, the original version of the second amended plan was denied, with judge Michael E. Romero saying the court lacked subject-matter jurisdiction to approve non-debtor third-party releases included in the plan.
The court said the revised plan addressed those concerns.
According to the plan confirmation order, the original plan sought to distribute the proceeds from Midway Gold’s asset sales and the other remaining assets of the debtors through a liquidating trust, incorporated a series of settlements and provided for the resolution of various other disputes.
“The revised plan does not change or affect any of these matters,” the order said.
Under the plan, 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 under Chapter 11 case number 15-16835.
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