The team of Fox Rothschild attorneys, that included Brett Axelrod, Dawn Cica, and Micaela Rustia Moore, filed a Chapter 15 for recognition of the foreign proceeding under Canada's Companies' Creditors Arrangement Act before the Supreme Court of British Columbia in Vancouver. The foreign representative sought to preserve the status quo in order to ensure the debtors would have the opportunity to restructure their businesses for the benefit of all stakeholders as contemplated under the U.S. Bankruptcy Code and Canadian law. The debtors commenced the Canadian Proceeding and filed the Chapter 15 Petition based upon defaults asserted by Deutsche Bank AG related to the purchase of gold. The Canadian Court issued an initial order appointing the foreign representative, authorizing the filing of a chapter 15 petition and specifically prohibiting Deutsche Bank from exercising remedies against the debtors' assets. Due to the nature of the debtors' mining operations and the related safety, regulatory and environmental concerns, the debtors' ability to fund expenses for supplies and payroll is crucial. In turn, the debtors' cash flow is dependent on its ability to sell gold on favorable terms to its primary purchaser. Fox Rothschild assisted with obtaining provisional relief on an expedited basis and getting relief from the U.S. Bankruptcy Court the very same day the chapter 15 petition was filed. The team further assisted in obtaining other forms of relief, including a stipulated use of cash collateral with Deutsche Bank, before the U.S. Bankruptcy Court that have allowed the Debtors to continue their operations. The Fox team also assisted with the process that led to the eventual sale of the gold mines.

 

Please send your news to Kris Wolcott at kwolcott@turnaround.org to be included in the next issue of TMA Network of Women in the News.

 

The TMA Network of Women (TMA NOW) is an affinity group within TMA, created to foster female leadership by creating the premier business development and networking group for women in the turnaround community. TMA NOW aims to provide substantive educational programming and networking opportunities to promote career growth and help women break through the glass ceiling.