Financially troubled McAdam Resources has filed for bankruptcy. The Ontario filing calls for each unsecured creditor to be offered five common shares of McAdam for each $1 of debt outstanding. The proposal, subject to regulatory approval, will be voted on at a meeting of creditors next month. If accepted by the creditors and the Supreme Court of Ontario, the company will issue the number of shares in satisfaction of its debt. If the proposal is rejected, the company is automatically deemed bankrupt as of the date of filing of the proposal. Yale Kline Levitsky Feldman Inc. has been appointed as Trustee to administer the proposal and as interim Receiver to manage the company’s affairs until the creditors’ meeting in mid-September.
McAdam is in default of a $1.9- million loan to Muscocho Explorations (TSE) and also owes nearly $1 million to a number of unsecured creditors. Exploration has halted on the company’s two gold properties, McWatters in northwestern Quebec and Spud Valley in British Columbia.
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