Allied Nevada Gold Files For Bankruptcy Protection

(RTTNews) - Allied Nevada Gold Corp. (ANV, ANV.TO) and certain of its domestic direct and indirect subsidiaries filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware today.

Allied Nevada said it will continue to operate its business as a "debtor in possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Under the proposed financial restructuring, which requires Bankruptcy Court approval, Allied Nevada's trade creditors and vendors are expected to be paid in full.

Allied Nevada announced an agreement with certain holders of its 8.75% senior unsecured notes due 2019 and its secured bank lenders to effect a reduction in the Company's funded debt obligations and provide the Company with additional liquidity.

In conjunction with the chapter 11 filing, Allied Nevada entered into a restructuring support agreement with noteholders collectively owning or controlling in excess of 67% of the aggregate outstanding principal amount of the Company's Notes and the Company's secured bank lenders. In this agreement, the supporting noteholders and secured bank lenders committed to support the restructuring transaction, which includes a restructuring of the Company's debt and equity.

The company and the supporting noteholders have also agreed on a $78 million debtor in possession (DIP) secured credit facility. The Company plans to use this DIP financing to maintain business-as-usual operations during the restructuring process. The company believes its current and anticipated cash resources will be sufficient to pay its expenses and maintain its business operations during the pendency of its chapter 11 cases.