Lydian, subsidiaries begin restructuring proceedings under CCAA

By Sarah Lizee

Olympia, Wash., Dec. 23 – Lydian International Ltd., Lydian Canada Ventures Corp. and Lydian U.K. Corp. Ltd. were granted protection under the Companies’ Creditors Arrangement Act under order of the Ontario Superior Court of Justice, according to a press release.

A stay was also granted in favor of Lydian Armenia CJSC, Lydian International Holdings Ltd., Lydian Resources Armenia Ltd. and Lydian U.S. Corp.

The court granted CCAA protection for an initial 10-day period, which expires on Jan. 2.

While under CCAA protection, creditors and others are stayed from enforcing any rights against the company, Lydian Canada, Lydian U.K. and a number of their direct subsidiaries including Lydian Armenia.

“Since June 2018, illegal blockades have prevented access to the company’s Amulsar Project in Armenia,” the release said.

“Despite its many public statements that there is no legal basis on which to prevent the company’s development of the Amulsar Project, the Government of Armenia has failed to remove the illegal blockades.

“As a result, the company’s lenders were not prepared to further extend a previously announced forbearance agreement, which expired on Dec. 20, 2019.”

During the CCAA proceedings, it is expected that ordinary course obligations to employees and key suppliers of goods and services subsequent to the filing date will continue to be met.

Management of the company will remain responsible for the day-to-day operations under the general oversight of Alvarez & Marsal Canada Inc., who was appointed as the CCAA monitor under the initial order.

While under CCAA protection, the company intends to continue discussions with its lenders and others, including Armenia, to seek to maximize the outcome for all stakeholders including the hundreds of employees, contractors and suppliers affected by the ongoing blockades.

The company said it also intends to pursue an end to the actions that have resulted in Lydian Armenia’s inability to access the Amulsar Project, the ability to pursue financing and/or sale options for the Amulsar Project and finalizing financing discussions with respect to potential foreign investment arbitration proceedings against Armenia.

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

© 2015 Prospect News.
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