Sorry, FG has fallen off my radar and I only check PACER once a week and conduct general DD about once a month. So two days after the last DD search things started to happen, which I missed. So if I am your sole source of FG info, I am sorry, this info is already old.
1) The Relief canyon Mine was sold to Sagebrush Gold, finalizing August 30.
http://finance.yahoo.com/news/Sagebrush-Gold-Ltd-Acquires-pz-879012027.html?x=0&.v=1
2) The Relief Canyon mine was sold for almost double what Canarc offered:
(i) $12,000,000 cash and (ii) $8,000,000 of senior secured convertible promissory notes (collectively, the "Notes") issued to Platinum Long Term Growth LLC ("Platinum") and Lakewood Group LLC ("Lakewood" and collectively with Platinum, the "Sellers").
http://biz.yahoo.com/e/110830/sage.ob8-k.html
3) Senetek let go of their ownership and was paid back by Platinum:
Senetek Plc (OTCBB:SNKTY.ob - News) announced today that it has elected to exercise its contractual "put" right with Platinum Partners and has elected to receive back its $5 million investment in the Relief Canyon secured debt plus accrued interest. Additionally, the Company has elected to repay the secured debt in the amount of $2,876,790 it currently owes to Platinum.
http://finance.yahoo.com/news/Senetek-Announces-Exercise-of-prnews-991898474.html?x=0&.v=1
4) Sagebrush Gold hired Steve Tibbals (the former FG plant manager)
http://finance.yahoo.com/news/Sagebrush-Gold-Announces-pz-2469954064.html?x=0&.v=1
If you want to still invest in the Relief Canyon SAGE.OB may be an option for you. This is a pretty good summary. I haven’t finished my DD on them yet.
http://www.smallcapnetwork.com/Sagebrush-Gold-Ltd-OTC-SAGE-Starting-to-Stir-the-Pot/s/via/1789/article/view/p/mid/1/id/70/
So this is where things are interesting. FG owed Platinum 20 million and they just received 20 million from selling the mine. If Platinum also says they are owed law expenses to obtain the money, it’s a pretty good bet that the civil suit paid for that. Also, remember almost 1 million of “extra” equipment was sold to pay for expenses to keep the mine in stasis and I don’t know if that was all used up. And Canarc bought (and resold) the lab for 600k as well: http://finance.yahoo.com/news/Canarc-Sells-Relief-Canyon-ccn-3090266764.html?x=0&.v=1
Thus, it is difficult to believe that anything is owed to Platinum anymore. Actually if I was another creditor I may look into Platinum have made a profit and need to release the profit to the other creditors. But at least the Platinum debt should be off the FG books now. The last monthly statement had the debt at 32 million (the creditors list, on PACER, only has 23 million). But 32 minus 20 leaves 12 million of debt. 12 million is approximately what the NOLs (30+ million) are worth to company earning revenue. So it seems very likely of a reorg.
There are a lot of ifs. The remaining creditors have to take less than what they are owed. But that is common in a reorg. There has to be an infusion of money to pay for law fees and taxes. And the commons are still a question mark. But the next few weeks/months should be interesting.
I will pay closer attention to this one.
Good luck
-Y
