Downhill for Hillsborough

Past losses have caught up to Hillsborough Resources (HLB-T) and its 63%-owned Quinsam Coal division, both of which recently filed for bankruptcy protection.

Hillsborough lost $700,000 (4 cents per share) on revenue of $4.1 million in the three months ended June 30, compared with a loss of $2.6 million (15 cents per share) on $9.6 million in the corresponding period a year earlier.

During the first half of this year, the company lost $1.5 million (9 cents per share) on revenue of $9.6 million, compared with a year-ago loss of $3.9 million (22 cents per share) on $17.1 million.

Quinsam sold its non-core Watson Lake property and mining equipment for $400,000 and will file refinancing plans with the courts in late August. In the meantime, operations are continuing at a level sufficient to supply domestic customers and cover operating costs. Hillsborough had $1.1 million in debt on June 30.