A week's grace
Judge gives Royal Oak more time
NNSL (Mar 26/99) - Troubled Royal Oak Mines continues to stave off receivership.
The company, which owes creditors $600 million, now has protection from creditors through Thursday, April 1.
Royal Oak had hoped for a month.
Between now and April 1, the company, which owns Giant Mine, will be working with creditors in an attempt to restructure its debt.
In Ontario court Wednesday, Mr. Justice James Farley extended the stay to April 1, and also allowed Royal Oak to use $2.1 million in loan money from Trilon Financial Corp.
The $2.1 million is part of Trilon's debt-in-possession fund and will be used to continue operations.
Last week, Bank of Nova Scotia urged the court to put Royal Oak in receivership.
But, said a Royal Oak spokesperson, the judge determined the motion was not "appropriate" and not in the best interests of the stakeholders.
Bank of Nova Scotia is a creditor of Royal Oak. The lender is owed about $5 million.
On Feb. 15, the insolvent Royal Oak sought and obtained protection from creditors under the Companies' Creditors Arrangement Act.
In trading on the TSE, Royal Oak opened down six cents yesterday at 16 cents. By mid-day, the company's stock traded at 16.5 cents.
Royal Oak's 52-week low is 13.5 cents, set last month.