Thistle gets reprieve

Creditor protection for Thistle Mining (THT-T) will be extended three months after a decision by the Ontario Superior Court allowing the company to continue with a proposed restructuring.

The extension under the Companies’ Creditors Arrangement Act gives Thistle until June 30 to devise 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.