Atlas emerges from bankruptcy

Creditors and the U.S. Bankruptcy Court have approved a plan of reorganization submitted by Atlas (ATSP-OTC).

Under the plan, the company will no longer be liable for reclamation of the Moab uranium mill and tailings site in Utah. Instead, it will contribute related assets to a government-run trust, which will be responsible for cleaning the site.

Atlas operated the mill from 1956 to 1987. Reclamation began in 1987, and the company dismantled and disposed of the mill in 1996, leaving only 130 acres of tailings. The company lapsed into bankruptcy in September 1998.

Atlas has agreed to sell certain of its non-operating assets, including the Grassy Mountain property in Oregon and the Gold Bar property in Nevada. The company and its creditors would divide the proceeds of any sale. Existing debt will be converted into equity in the new company, with creditors receiving 85% and existing shareholders retaining the remaining 15%.

The company will also complete a share rollback of one share for every 30, effective Jan. 10. Shareholders with fewer than 1,000 shares will have theirs voided, along with all company warrants. In the end, the company will emerge from bankruptcy with 6 million shares. The reorganized company will focus on expanding lead-zinc-silver production at the Andacaba mine and mill complex near Potosi, Bolivia, operated by its wholly owned subsidiary, Arisur.