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These guys were a giant disappointment

Posted by ipso facto @ 14:31 on October 30, 2015  

Aurcana Corporation Announces Commencement of CBCA Proceedings to Implement Restructuring Transaction

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Oct 30, 2015) – Aurcana Corporation (TSX VENTURE:AUN) (the “Company” or “Aurcana”) announces that it is today commencing proceedings under the Canada Business Corporations Act (the “CBCA Proceedings”) to implement the restructuring transaction announced by the Company on October 16, 2015 (the “Restructuring Transaction”) under which all of the Company’s debt obligations to Orion Mine Finance (Master) Fund I L.P. (the “Lender”), as lender under the Company’s amended and restated senior secured credit facility dated April 29, 2014 (the “Facility”), will be extinguished.

As announced in the Company’s news release dated October 16, 2015, the Restructuring Transaction has the following key elements:
•all of the debt obligations due and in default under the Facility will be exchanged for the Company’s interests in its Mexican subsidiaries that own the La Negra mine, resulting in the elimination of approximately US$38.7 million of principal amount of secured debt due and in default under the Facility on completion of the Restructuring Transaction;
•the Company’s annual interest costs will be reduced by approximately US$2.3 million;
•a newly incorporated affiliate of the Lender (“Newco”) will purchase certain non-core equipment from Aurcana and certain of its subsidiaries for a total purchase price of US$3.5 million;
•Newco will pay Aurcana US$40,000 per month for a total period of 12 months for certain consulting services to be provided to Newco by specified officers of Aurcana in connection with the operation of the La Negra mine;
•the Company will retain all of its other assets, including the Shafter mine, with no dilution to shareholders; and
•the Restructuring Transaction is expected to be implemented on or before December 4, 2015.

more http://finance.yahoo.com/news/aurcana-corporation-announces-commencement-cbca-173944100.html

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