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.

Just Posted

UPDATED: Porter Creek highway shooting now attempted murder investigation

Police believe incident was “targeted and related to the illicit drug trade and organized crime”

Inuvik mayor pens letter of concern about Dempster conditions

Conditions near Eagle Plains have been “terrible” the past two summers, she says

Yukon skiers embrace experience at Winter Youth Olympic Games

Derek Deuling and Sasha Masson skied for Team Canada at the 2020 Lausanne Winter Youth Olympic Games

‘It was terribly traumatic to lose a patient,’ nurse says during Blackjack inquest

The inquest is now happening at the Kwanlin Dün Cultural Centre

Whitehorse council and staff consider low-income transit fares

The discussion leaves anti-poverty coalition members feeling optimistic

Today’s mailbox: Biomass, fire

Letters to the editor published Jan. 24

EDITORIAL: The health department needs a time-out

The information and privacy commissioner deserves to be treated better

Yukon Rivermen face tough tests on the road

The team is in the middle of its busiest stretch of the season — 10 league games in three weeks

Yukon skiers battle both rain and heavy snowfall at 2020 Haywood Western Canada Cup

“They also realize that you have to be ready for anything — extreme cold or extreme warm.”

City news, briefly

Some of the discussions from Whitehorse city council on Jan 20

Driving with Jens: Both motorists and pedestrians have responsibilities when sharing the road

Roadways are a shared-use public resource. They are meant to be shared… Continue reading

Today’s mailbox: Biomass

Letters to the editor published Jan. 17

Most Read