As a result of an 11th-hour agreement with B.C. Rail, Quintette Coal managed to meet its Feb. 29 deadline to file its restructuring agreement with the British Columbia Supreme Court.
Quintette has been operating under court protection against bankruptcy proceedings since mid-1990.
The agreement allows B.C. Rail a share in any future profits from Quintette’s coal mine near Tumbler Ridge, B.C., in return for cuts in freight rates. Details of the profit sharing agreement or the magnitude of the freight cuts were not disclosed.
With all major creditors now on side, the approval of Quintette’s restructuring proposal at a court hearing set for the end of March is expected to be only a formality.
Quintette is now managed by Teck (TSE) which owns a 61% interest in the nearby Bullmoose mine.
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