Creditor protection for Thistle Mining (THT-T) will be extended another three months after a decision in the Ontario Superior Court, allowing the company to continue with a proposed restructuring plan.
The extension under the Companies’ Creditors Arrangement Act gives Thistle until June 30 to find a satisfactory plan for restructuring debt it owes to secured creditors and noteholders. The court ordered a meeting of creditors for May 3 to vote on Thistle’s proposal.
Under the proposal, unsecured and trade creditors would be paid in full and Thistle would continue as a business. Senior secured creditors would have their US$57 million owed by Thistle and a subsidiary bought back for secured notes for about US$23 million and a 70% stake in the equity of the restructured company.
Noteholders are being asked to take a 25% share in the restructured company in exchange for cancelling the existing US$25 million in notes.
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