Great Panther Mining (TSX: GPR)(NYSE: GPL) has stopped trading in Toronto, and is subject to delisting both at home and in New York, after announcing it has filed for creditor protection.
The cash-strapped Canadian miner had warned on Tuesday that it would likely default on several material debtor agreements owing to liquidity constraints.
Great Panther has also placed its Tucano gold and silver mine in Brazil on care and maintenance while its local subsidiary undergoes a court-supervised arrangement with its creditors.
The Brazilian unit, Mina Tucano, and its shareholders filed on Wednesday for a judicial reorganization in the district of Rio de Janeiro.
Under the reorganization process in Brazil, the subsidiary and its shareholders will remain in possession of their assets as well as maintain control and manage the business, while it attempts to restructure operations.
The Vancouver-based company is exploring its options while continuing to operate the business, but warned that a failure to achieve its restructuring goals through an approved proposal would result in bankruptcy.
The delisting review from the Toronto exchange is scheduled for September 16. The South America-focused miner has also received noticed from New York that proceedings for delisting have begun and Great Panther has seven days to appeal the decision.