Court extends bankruptcy protection for Adanac
Last Updated: Tuesday, April 7, 2009 | 1:07 PM CT
CBC News
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Adanac Molybdenum Corp. has another three months to sort out its finances while under creditor protection, the B.C. company said this week.
The company was poised to construct a $600-million open-pit molybdenum mine in northern B.C. when it first filed for bankruptcy protection in late 2008.
This month the court gave the company until July 3 to restructure under the Companies' Creditors Arrangement Act, the company said in a news release.
Adanac has hired Canaccord Capital Inc. to help it weigh its options, which include finding new investors, putting the company up for sale, or only selling its assets.
At the end of March, the company's chair and chief executive officer Peter Jones resigned. He was replaced by Christopher Kirby as CEO and president while director Roger Taylor was appointed chair.
Work on the Ruby Creek project, 24 kilometres northeast of Atlin, was well underway when the company ran into financial trouble last year. It had the permits to begin mine construction and had already built a road to the site.
The price of molybdenum plunged in 2008 along with many other commodities. It is currently averaging about $8 US per pound, down from $30 US per pound a year ago.
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