Adanac Completes Initial Restructuring
posted on Jan 20, 2009 01:12PM
|January 20, 2009|
|Adanac Completes Initial Restructuring|
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2009) - Adanac Molybdenum Corporation ("Adanac or the Company") (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) announced today that in connection with its overall restructuring under the Companies' Creditors Arrangement Act (the "CCAA"), it has implemented measures to curtail its business operations and substantially reduce its operating costs.
This initial phase of the Company's restructuring included, among other things, reducing employees by approximately 70%, substantially reducing contractors, demobilizing the Ruby Creek site, eliminating or substantially reducing services provided to the Company and repaying a portion of the Company's indebtedness to its Senior Secured Creditors. Adanac expects to further reduce operating costs by consolidating its head and engineering offices to minimize lease payments.
Adanac also announces that Mr. Edward C. Lee and Mr. Neil S. Seldon have resigned from the Board of Directors of the Company. Adanac extends its gratitude to Edward and Neil for their services over many years and wishes them success in their future endeavours.
As stated in prior news releases, Adanac has engaged Golder Associates Ltd. to continue to update the Ruby Creek mineral resources, compliant with NI 43-101, so as to include results from the 2007 and 2008 exploration program. The 2007 and 2008 exploration drilling program was completed prior to demobilization of the Ruby Creek site.
Going forward, Adanac intends to continue to seek investors for the development of the Ruby Creek project while concurrently seeking opportunities relating to the sale of the Company or its assets. Any refinancing or sale will be subject to approval from the Senior Secured Creditors, KPMG Inc. in its capacity as Monitor appointed in Adanac's CCAA proceedings as well as the Supreme Court of British Columbia.
About Adanac Molybdenum Corporation
Adanac Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and owns the Ruby Creek Project in northern British Columbia. The Company has advanced the project through feasibility studies, a production decision and has previously ordered long-lead equipment, completed permitting for construction, constructed a road to the site and secured US$80 million in bridge financing.
Adanac Restructuring Process
Readers are reminded that, on December 19, 2008, Adanac obtained an Initial Order under the CCAA as part of its intention to restructure its business, including primarily its debt.
By Order of the Supreme Court of British Columbia made Friday, January 16, 2009, all of the relief granted in the Initial Order made in Adanac's Companies' Creditors Arrangement Act proceedings on December 19, 2008 has been confirmed, including the stay of proceedings which has been extended until April 3, 2009. Further information, including copies of the December 19, 2008 and January 16, 2009 Orders can be found on the website of KPMG Inc. at www.kpmg.ca/adanac.
The Initial Order appointed KPMG Inc. as Adanac's Monitor.
Enquiries may be directed to: Mr. Mark Kemp-Gee, KPMG Inc. 777 Dunsmuir Street, PO Box 10426 Vancouver, BC V7Y 1K3 Telephone: (604) 691-3397 Facsimile: (604) 691-3036 Email: [email protected]