| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Great Panther Mining Limited (TSX:GPR) (NYSE-A:GPL) ("Great Panther" or the "Company"), reports that, with the authorization and approval of its Board of Directors, it has determined to file a notice of intention to make a proposal (the "NOI") under the Bankruptcy and Insolvency Act (Canada) (the "BIA") today, which will provide creditor protection while the Company seeks to restructure its affairs.
The decision to seek creditor protection was taken after careful consideration of available alternatives, the Company's cash position, forecasted revenue and expenses (including in relation to its subsidiaries), and scheduled debt payments. The Company expects that it is likely to default on several material debtor agreements due to liquidity constraints stemming from the operational challenges previously disclosed, inflationary pressures significantly impacting costs, unforeseen but necessary capital expenditures, and contractor mobilization delays because of equipment availability issues. Following consultation with its legal and financial advisors, the Board of Directors determined that it was in the best interests of the Company and its stakeholders to file the NOI and obtain creditor protection. The Board of Directors also authorized management to seek the conversion of the BIA proceedings into proceedings under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") should management determine that CCAA proceedings would be more appropriate.
The effect of the NOI is an immediate stay of proceedings for 30 days, which may be extended by subsequent court order. Filing the NOI will allow the Company to pursue available options to maximize the Company's value for stakeholders. Importantly, the Company will continue to operate and will remain in control of its business. While the Company is exploring strategic and financial alternatives to maximize stakeholder value in the proposed proceedings, the failure of the Company to achieve its restructuring goals through an approved proposal would result in the Company being deemed to have made an assignment into bankruptcy.
Alvarez & Marsal Canada Inc. has been appointed as proposal trustee pursuant to the BIA (the "Proposal Trustee") to monitor the Company's operations and restructuring. Information and materials filed in connection with the NOI proceedings can be found on the Proposal Trustee's website at www.alvarezandmarsal.com/GPR.
Due to the above-mentioned liquidity constraints, the Company's Brazilian subsidiary, Mina Tucano Ltda. ("Mina Tucano"), intends to enter a temporary care and maintenance period while the Company explores alternatives to maximize value for all stakeholders. As a part of this process, the Company has terminated several material contracts with suppliers. The Company intends to continue to process stockpiles during the care and maintenance period and work with its suppliers to maximize stakeholder value.
