Veris Gold Corp., a Canadian miner, filed for bankruptcy in the U.S. and Canada after Deutsche Bank AG declared it in default and the company was unable to refinance debt, according to court papers.
Veris had assets worth $323 million and liabilities of $282 million as of March 31, the company said today in court papers filed in federal court in Reno, Nevada.
The company and its affiliates “are facing financial difficulty because they lack adequate liquidity to satisfy their long-term debt obligations,” Chief Financial Officer Shaun Heinrichs said in an affidavit providing details of the bankruptcy filing.
The filing in Nevada under Chapter 15 of the U.S. Bankruptcy Code is designed to protect the company’s U.S. assets from creditors while a Canadian court oversees a plan to either reorganize or liquidate Veris.
The company filed a bankruptcy case with the Supreme Court of British Columbia in its hometown of Vancouver.
The case is In re Veris Gold Corp., 14-bk-51015, U.S. Bankruptcy Court, District of Nevada (Reno).