Thistle package gets creditors’ vote (May 04, 2005)

Secured creditors of Thistle Mining (THT-T) have voted in favour of a reorganization plan that would give them 95% of the refinanced company.

A vote held yesterday received the approval of senior secured debt holders and of noteholders, both of whom had been asked to take stock instead of cash in payment of Thistle’s debt. The plan calls for Thistle to issue US$23 million in secured notes and to issue shares in payment of the rest of the company’s senior secured debt, giving the holders of the debt — who are owed US$57 million — a 70% interest in the company.

Note holders were asked to take a 25% share in the reorganized company in exchange for cancelling the US$25-million note issue. Unsecured and trade creditors, who are to be paid in full under the reorganization plan, were not affected parties and so did not vote on it.

The Ontario Superior Court has scheduled a hearing for final approval of the reorganization plan for May 10. Trading in Thistle has been suspended since January.