This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Great Basin Gold Updates Insolvency Proceedings And DIP Loan Status

JOHANNESBURG, SA, Oct. 4, 2012 /PRNewswire/ - Great Basin Gold Ltd. (" Great Basin Gold"), (TSX: GBG; NYSE MKT: GBG; JSE: GBG) announces that further to its news release of September 20, 2012, the $35 million debtor-in-possession loan from its current lenders (" Lender  DIP Loan") authorized by the Supreme Court of British Columbia on September 19, 2012 and reaffirmed on September 27 with amendments, closed on October 3, 2012. An initial utilisation of US$14,235,000 under the Lender DIP Loan has now been advanced of which approximately US$9,235,000 was used to pay down the emergency loan advanced by the lenders on September 20 as an amendment of the existing 2010 Burnstone $150 million secured credit facility ("the 2010 Burnstone Facility").

A British Columbia appellate court has today denied an application made by an ad hoc committee of holders of the Great Basin Gold's convertible debentures (" CD Committee") for leave to appeal the September 27 decision of the British Columbia Supreme Court.  The CD Committee's main objection to the Lender DIP Loan is the granting by Great Basin Gold Inc. ("GBGI"), parent of the Great Basin Gold  subsidiaries in Nevada which own the Hollister and Esmeralda assets, of a guarantee (the " Guarantee") of the obligations of the 2010 Burnstone Facility, which is a requirement under the Lender DIP Loan.  The British Columbia Supreme Court rejected this objection, and the British Columbia Court of Appeal today denied leave to appeal that decision. Yesterday, the CD Committee obtained from a Nevada State court a 7 day temporary restraining order (" TRO") restricting GBGI from entering into the Guarantee. The CD Committee is also seeking a receivership order against GBGI.  GBGI will vigorously defend itself in the Nevada litigation.

In other developments, TSX has determined to delist the Common Shares, Debentures and Warrants (Symbols: GBG, GBG.DB and GBG.WT) (collectively, the "Securities") of the Company at the close of market on October 25, 2012 for failure to meet the continued listing requirements of TSX. The Securities will remain suspended from trading.

Lou van Vuuren CEO (interim)

Cautionary and Forward Looking Statement Information

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs