On August 26, 2014, Mercator Minerals Ltd. ("Mercator") and its wholly owned subsidiary, Creston Moly Corp. ("Creston") (together, the "Companies") filed a Notice of Intention to Make a Proposal under Section 50.4(1) of the Bankruptcy and Insolvency Act (Canada) ("BIA").The Companies were not able to obtain further sources of funding to allow a proposal to be made to the Companies' creditors. Pursuant to section 50.4(8) of the BIA, the Companies were deemed to have filed assignments in bankruptcy on September 5, 2014. Deloitte Restructuring Inc. was appointed as Trustee of the estates of the Companies by the Official Receiver.
On August 27, 2014, the following documents were mailed to known creditors:
On September 9, 2014, the Official Receiver issued a Certificate of Assignment in Bankruptcy for Mercator, effective from the date of bankruptcy, being September 5, 2014.
On September 11, 2014, the following documents were mailed to known creditors:
On September 25, 2014 the Trustee's appointment was affirmed by the creditors at the first meeting of creditors. The following document was tabled at the meeting:
November 25, 2014 – On November 25, 2014, the Trustee filed a Notice of Application to seek the approval of the Court to engage a financial advisor to undertake a sale and marketing process for Creston Moly Corp. and its assets. Posted to the website are the following documents:
December 5, 2014 – The Trustee’s application was heard on December 2, 2014 and the following order was made authorizing and directing the Trustee to engage Deloitte Corporate Finance Inc. to undertake a sale and marketing process for Creston Moly Corp. by way of share or asset sales:
January 30, 2015 – On January 16, 2015, the Trustee of Mercator entered into an agreement to sell the shares of Creston to Starcore Mines International Ltd. for cash consideration of $2 million (the “Creston Transaction”). On January 30, 2015, the Trustee of Creston filed a Notice of Application to seek its discharge, and the discharge of Creston from bankruptcy proceedings, subject to the closing of the Creston Transaction and the payment of a final distribution to creditors. Posted to the website are the following documents:
February 3, 2015 – Following discussions with the Office of the Superintendent in Bankruptcy, the Trustee of Creston has amended its Final Statement of Receipts and Disbursements and is seeking revised Orders in the application to Court set for hearing on February 4, 2015. Posted to the website are the following documents:
February 4, 2015 – The Trustee’s application was heard on February 4, 2015 and the following orders were made approving the discharge of Creston, and the Creston Trustee, subject to the closing of the Creston Transaction and the payment of a final distribution to creditors:
March 2, 2015 – The Trustee closed the Creston Transaction and made payment of the final distribution to creditors of Creston on February 13, 2015. The discharge of Creston and the Creston Trustee took place on February 24, 2015. Posted to this website are the following documents:
On April 27, 2015, the Trustee issued a notice to all known creditors that had not yet proven their claims stating that all proof of claim forms (with supporting documentation) must be submitted to the Trustee by no later than May 28, 2015 in order to be eligible for a dividend distribution.
September 16, 2015 – Posted to this website is the Trustee’s Second Report to Creditors providing an update regarding the Trustee’s activities since the Preliminary Report and outlining the next steps in the administration of the estate.
On December 7, 2016, the Trustee issued a letter to all proven creditors informing creditors that, in the near future, the Trustee expects to be in a position to declare an interim dividend. The dividend will be paid in US dollars, unless otherwise requested by creditors (refer to the letter posted below for further details).
On January 18, 2017, the Trustee issued a notice to all proven creditors informing creditors that on January 17, 2017 the Trustee declared an interim dividend in the amount of CAD$32.1 million, which would be paid in the week commencing February 6, 2017. The Trustee also sent to proven creditors the Trustee’s Third Report to Creditors providing an update regarding the Trustee’s activities since the Second Report and outlining the next steps in the administration of the estate.
On February 27, 2020, the Trustee declared a second interim distribution to all proven creditors in the amount of CAD$8,650,000. On March 12, 2020 the Trustee sent to proven creditors the Trustee's Fourth Report to Creditors providing an update regarding the Trustee's activities since the Third Report and outlining the next steps in the administration of the estate.
On February 28, 2024, the Trustee obtained its discharge.
General and creditor inquiries may be directed to Mr. Paul Chambers:Deloitte Restructuring Inc. 2800 - 1055 Dunsmuir StreetVancouver, BC V7X 1P4Telephone: (604) 640-3368Fax: (604) 602-1583Press enquiries regarding the bankruptcy proceedings may be directed to Caitlin Stidwell at 416-775-7144.
Last updated Mar 1, 2024
