Court approves Claude settlement

A settlement proposal to unsecured creditors of Claude Resources (TSE) has received court approval.

Having paid the bankruptcy monitoring trustee $390,000, which is being allocated to unsecured creditors, Claude hopes to receive its certificate of full performance shortly.

The largest secured creditor, Western Canadian Shopping Centres (WCSC), has received $5.5 million from Claude and will receive a further $4.5 million between Sept. 30, 1993, and Dec. 31, 1994. In addition, WCSC will benefit from future earnings of the Seabee gold property in northern Saskatchewan, which exceed the Seabee cash flow.

In return, WCSC has agreed not to sue Claude for any outstanding indebtedness. As part of the settlement proposal, preferred Claude shares will be converted to common shares on the basis of 2.5 common for each preferred. This will bring the company’s outstanding common share capital to 10.9 million shares. Claude’s audited financial statements for 1991 and 1992 are nearly complete and will soon be submitted to various securities commissions, regulatory bodies and stock exchanges. At the same time, Claude will apply to have the current cease-trading orders lifted.