Crystallex files for bankruptcy protection and loses TSE listing
Crystallex International received protection today under the Companies’ Creditors Arrangement Act of Canada, and the company will also be delisted from the Toronto Stock Exchange next month.
Crystallex is struggling through a liquidity crisis owing $100 million senior unsecured notes.
The company has been seeking some financing arrangement, including a $120 million private placement it announced in October, but it said none of the financing arrangements were satisfactory.
“The [CCAA] order obtained today permits Crystallex to remain in possession and control of its property, carry on its business and retain employees while the Company obtains additional time to pursue its arbitration with the Bolivarian Republic of Venezuela and complete financings in order to enable all its creditors to be paid in full.”
The hearing date, an arbitral tribunal for its claim against the Bolivarian Republic of Venezuela with respect to the Las Cristinas Project, is set for November 11, 2013.
In February Crystallex announced that the Corporacion Venezolana de Guayana had “unilaterally terminated” the company’s mine operating contract for the Las Cristinas project in Venezuela.
The company learned on Dec. 7 that the Toronto Stock Exchange would delist the company since it no longer met requirements, and the last trading day will be January 6, 2012.
Crystallex shares will continue to traded on OTCQB market in the U.S.
Crystallex is a Canadian based mining company, with a focus on acquiring, exploring, developing and operating mining projects. Crystallex operated an open pit mine in Uruguay and developed and operated three gold mines in Venezuela.
The company’s principal asset is its international claim in relation to its investment in the Las Cristinas gold project located in Bolivar State, Venezuela.