Vietnam gold producer Besra announces that, after consideration of all viable alternatives, its Board of Directors has determined that it is in the best interests of the company and its stakeholders to commence restructuring proceedings under Canadian law.
This restructuring process will allow Besra to deal decisively with its cost and debt structure and to narrow its strategic focus in an effective and timely manner. The proceedings will also facilitate a restructuring of its unsecured notes using a straightforward process that doesn’t presently exist.
Besra made this decision with the unanimous approval of its Board of Directors after thorough consultation with its advisors and extensive consideration of all other alternatives.
Besra’s liquidity position deteriorated as a result of various factors, including, but not limited to, negative cash flow from operations in Vietnam caused by typhoons and government intervention, and a consequent inability to secure all required capital until its unsecured loan-notes were restructured.
However, the Vietnamese subsidiary operations are recovering with Bong Mieu back in production and Phuoc Son in preparation for re-opening.
Besra’s previously announced financing is currently on hold pending the outcome of the restructuring. Besra anticipates that once balance sheet relief is provided as an outcome of the restructuring, equity financing will be progressed.
Besra’s CEO John Seton said, “While we had reached agreement in principle with a large number of our note-holders, there is no existing, stream-lined formal mechanism by which the different notes may be dealt with efficiently and effectively in a single arrangement or compromise.”
He added, “These types of administration systems, which exist in Canada and the US, are effective. You can get things done.”