The amended proposal submitted by Besra Gold in the Ontario Superior Court of Justice has been approved by a majority of unsecured creditors holding in excess of two-thirds of value of proven unsecured creditor claims at the Second Reconvened Creditors Meeting held on April 7 in Toronto, Canada.
The amended proposal offered Besra’s creditors the opportunity to elect one of the following four options:
- Option 1 – to receive 3.25% of such creditor’s proven claim in cash and the remaining 96.75% in the form of a new note;
- Option 2 – to receive 70% of such creditor’s proven claim in common shares and the remaining 30% in the form of new warrants;
- Option 3 – to divide such creditor’s proven claim equally between Option 1 and Option 2; or
- Option 4 – a ‘convenience’ cash payment equal to the lesser of US$3000 and such creditor’s proven claim (which option is also the default option for any creditor failing to make an election).
Besra CEO John Seton said, “We are incredibly pleased that our proposal has been accepted by creditors and I especially would like to thank Euro Pacific Capital for their assistance and co-operation in supporting the proposal.”
The proposal will now proceed for Court approval in due course. Although dependent on a busy court schedule, this is expected to be approved in the next four weeks.
Once approved, the proposal will be binding on all the affected creditors, subject to the conditions set out including conclusion of a financing resulting in proceeds of not less than CA$10 million.
Besra will seek a variation of the cease trade order dated December 17, 2014, issued by the Ontario Securities Commission against Besra, so as to enable the company to complete the financing. This variation may take up to six weeks from the time Besra enters into a committed financing arrangement and it is anticipated the financing will close shortly after. The approved proposal provides for six months for the above to occur, however, Besra hopes to conclude the process by the end of June 2016.
Following the restructure and refinancing, Besra intends to make preparations for relisting on an appropriate trading platform - the TSX, ASX or an Asian bourse.