A formal “plan of arrangement” has been filed by St. Andrew Goldfields (TSE) in the Ontario Court of Justice (General Division) pursuant to the Companies’ Creditors Arrangement Act.
The plan calls for secured creditors to be paid in full or brought current. Unsecured creditors have three options: up to $2,000 in cash; 10% in cash plus two common shares for each dollar of proven claim; or three common shares for each dollar of proven claim.
After approval, but before implementation of the plan, St. Andrew is planning a rights offering for owners of its common shares and convertible preferred shares. One right will be issued for each share held, and two rights will entitle the holder to buy one common share at 20 cents per share. Meetings for secured and unsecured creditors, and for shareholders, will take place May 31 in Toronto. The bondholders’ meeting is scheduled for May 29 in Zurich.
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