Yukon Zinc plans to restructure rather than sell

Yukon Zinc has decided to restructure its Wolverine mine project, and will file a plan to deal with its creditors by the end of this week.

Yukon Zinc has decided to restructure its Wolverine mine project, and will file a plan to deal with its creditors by the end of this week.

The company confirmed its decision to restructure in a letter to the monitor overseeing its creditor protection proceedings on July 31.

The decision makes it “less likely” that the mine will be sold, according to Kibben Jackson, a lawyer for the company.

Yukon Zinc must present a plan of arrangement to its creditors by August 14. That plan will likely offer dividends to the company’s unsecured creditors, worth a fraction of the debt owed to each, said David Gruber, a lawyer for one of the creditors, in a previous interview with the News.

Jackson said the creditors will likely vote on the plan in September. If they approve it, the plan will be implemented in October, and the mine will not be sold.

A new report from the monitor provides an updated list of the debt owed to each of Yukon Zinc’s 310 creditors. The company owes a total of $654 million. The vast majority of that – $602 million – is owed to its Chinese parent company, Jinduicheng Canada Resource Corporation.

Another $20 million is owed to Shaanxi Zinc Industry Co., which the report describes as a “cousin” to Yukon Zinc.

All but nine of the creditors are unsecured, meaning they are not guaranteed any of the money owed to them.

Yukon Zinc was granted creditor protection in March, after the Wolverine Mine shut down in January due to low mineral prices.

Australian mining company MinQuest went public last month with a bid to buy the mine, if it does end up being sold. No details of the offer have been disclosed.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Mobile vaccine team Team Balto practises vaccine clinic set-up and teardown at Vanier Catholic Secondary School. Mobile vaccine teams are heading out this week to the communities in order to begin Moderna vaccinations. (Haley Ritchie/Yukon News)
Mobile vaccine teams begin community vaccinations

“It’s an all-of-government approach”

The now empty lot at 410 Cook Street in Whitehorse on Jan. 19. As developers move forward with plans for a housing development that would feature 16 micro-units, they are asking city council for a zoning change that would reduce the number of required parking spaces. (Crystal Schick/Yukon News)
Developer asks for zoning change

Would reduce the number of required parking spaces

The Liard First Nation is preparing to enter negotiations for self-governance with the territorial and federal governments. (Jackie Hong/Yukon News file)
Liard First Nation preparing to enter self-governance negotiations with Yukon, federal governments

Chief Stephen Charlie seeking an agreement separate from “dead end” UFA

asdf
WYATT’S WORLD

Wyatt’s World for Jan. 20, 2021

A Copper Ridge resident clears their driveway after a massive over night snowfall in Whitehorse on Nov. 2, 2020. Environment Canada has issued a winter storm warning for the Whitehorse and Haines Junction areas for Jan. 18. (Crystal Schick/Yukon News file)
Winter storm warning for Haines Junction and Whitehorse

Environment Canada says the storm will develop Monday and last until Tuesday

Mayor Dan Curtis listens to a councillor on the phone during a city council meeting in Whitehorse on April 14, 2020. Curtis announced Jan. 14 that he intends to seek nomination to be the Yukon Liberal candidate for Whitehorse Centre in the 2021 territorial election. (Crystal Schick/Yukon News)
Whitehorse mayor seeking nomination for territorial election

Whitehorse mayor Dan Curtis is preparing for a run in the upcoming… Continue reading

Gerard Redinger was charged under the <em>Civil Emergency Measures Act</em> with failing to self-isolate and failing to transit through the Yukon in under 24 hours. (Joel Krahn/Yukon News file)
Man ticketed $1,150 at Wolf Creek campground for failing to self-isolate

Gerard Redinger signed a 24-hour transit declaration, ticketed 13 days later

Yukon Energy, Solvest Inc. and Chu Níikwän Development Corporation are calling on the city for a meeting to look at possibilities for separate tax rates or incentives for renewable energy projects. (Crystal Schick/Yukon News file)
Tax changes sought for Whitehorse energy projects

Delegates call for separate property tax category for renewable energy projects

Yukon University has added seven members to its board of governors in recent months. (Crystal Schick/Yukon News file)
New members named to Yukon U’s board of governors

Required number of board members now up to 17

Yukonomist Keith Halliday
Yukonomist: Your Northern regulatory adventure awaits!

“Your Northern adventure awaits!” blared the headline on a recent YESAB assessment… Continue reading

Yukoner Shirley Chua-Tan is taking on the role of vice-chair of the social inclusion working group with the Canadian Academy of Health Sciences’ oversight panel and working groups for the autism assessment. (Submitted)
Canadian Academy of Health Sciences names Yukoner to panel

Shirley Chua-Tan is well-known for a number of roles she plays in… Continue reading

The Fish Lake area viewed from the top of Haeckel Hill on Sept. 11, 2018. The Yukon government and Kwanlin Dün First Nation (KDFN) announced they are in the beginning stages of a local area planning process for the area. (Crystal Schick/Yukon News file)
Local area planning for Fish Lake announced

The Government of Yukon and Kwanlin Dün First Nation (KDFN) announced in… Continue reading

Most Read