Lydian: Senior lender vote, CCAA plan hearing to be scheduled Thursday

By Caroline Salls

Pittsburgh, June 16 – Lydian International Ltd., along with Lydian Canada Ventures Corp. and Lydian U.K. Corp. Ltd., announced Monday that the Ontario Superior Court of Justice will conduct a hearing on June 18 to accept the filing of their Companies’ Creditors Arrangement Act plan of arrangement and scheduling a meeting for senior lenders to vote on the plan.

Also on June 18, a hearing will be scheduled for court approval of the plan.

According to a company news release, if approved, the plan will result in Lydian Canada and Lydian U.K. exiting the CCAA proceedings through a corporate restructuring and provide a mechanism for the winding up of Lydian International.

Lydian said the plan will implement a restructuring under which existing senior secured lenders Orion CO IV (ED) Ltd., Resource Capital Fund VI LP and Osisko Bermuda Ltd. would own and control a restructured Lydian Canada and its direct and indirect subsidiaries, including Lydian U.K. and Lydian Armenia CJSC.

The company said the plan calls for a full release of all claims against Lydian International and its directors and officers, including all senior lender claims.

Claims against Lydian Canada, Lydian U.K. and the other subsidiaries, including Lydian Armenia, will not be released and will remain outstanding after implementation of the plan.

As a result, Lydian said only the senior lenders will be entitled to vote on the plan, while other parties, including unsecured creditors whose claims are unaffected and equityholders, will not be entitled to vote nor receive any distributions.

Following implementation of the plan, Lydian International will have no assets, and it will begin proceedings to be wound up under Jersey law, which will include the cancellation of all ordinary shares in its capital.

In addition, as a result of a previous announcement that it has not complied, nor is it planning on complying in the future, with its required continuous disclosure documents, the Ontario Securities Commission has informed the company that a cease trade order has been issued against it.

Lydian is a Toronto-based gold developer focusing on construction at its 100%-owned Amulsar gold project located in south-central Armenia.

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