Colossus Minerals’ Bankruptcy Plan Okayed by Ontario Court

Mineweb reported on Saturday that an Ontario court has approved Colossus Minerals Inc.’s bankruptcy plan. It will leave existing shareholders with “a tiny fraction of their current ownership of the company.”

As quoted in the market news:

Key terms of the bankruptcy see Colossus stock consolidated 200 to 1 and then creditors receiving new shares linked to 30 percent of the value of their debt. (That is they get a new share for every dollar of debt, times 0.3, they are owed). According to that formula it appears Sandstorm Gold is to end up with over a third Colossus’ new share count. Noteholders get about half. Current shareholders would end up with between 1 to 2 percent of Colossus new shares.

Click here to read the full Mineweb report.