STRATECO
Strateco receives court approval for $4M financing
2015-11-03 09:59 ET - News Release
Mr. Guy Hebert reports
UPDATE FROM STRATECO: FINANCING OF THE $190 MILLION LITIGATION AGAINST THE QUEBEC GOVERNMENT; APPROVAL AND CLOSURE
Strateco Resources Inc.'s $4-million interim financing from Third Eye Capital Corp. has received the approval of the Superior Court of Quebec, commercial division, under the Companies' Creditors Arrangement Act (CCAA) on Oct. 23, 2015, and closed on Oct. 29, 2015. The financing will enable Strateco to cover, among other things, the costs associated with its $190-million litigation against the Quebec government.
Court protection under the CCAA
On Oct. 23, 2015, Danielle Turcotte, SCJ, who is responsible for the proceedings instituted by Strateco under the CCAA, issued a judgment:
- Authorizing Strateco to close on the $4-million interim financing from Third Eye and creating a superpriority charge over Strateco's assets to secure the obligations owing under the financing;
- Authorizing Strateco to enter into a contingency fee arrangement with Irving Mitchell Kalichman, which is representing Strateco in the litigation;
- Extending the protection granted by the initial order until Jan. 29, 2016.
The Third Eye financing closed on Oct. 29, 2015.
Motion to institute proceedings (the litigation)
In relation to the litigation, Guy Hebert, the president and chief executive officer of Strateco, was interrogated by the Cree prosecutors in late October, 2015, in accordance with the agenda agreed to by the parties.
As a next step, Strateco will interrogate a Cree representative at the end of November, 2015. The timing of the proceedings is in line with the established timetable.