Kaleva article on Otso, Friday edition. Nothing New!
News from Kaleva which is the district News Paper, nothing really new:
Headline:Otso Gold received the requested recovery and foreclosure bans - the company is also applying for reorganization proceedings in Sweden and Canada
Body:
The creditors of Otso Gold Oy, which owns the Raahe gold mine, are currently unable to recover their receivables from the mining company. At the request of Otso Gold, the Oulu District Court has imposed a temporary ban on payment and security, a ban on recovery and foreclosure, and a ban on other enforcement measures.
The temporary bans will remain in force until a decision is made to initiate the reorganization proceedings applied for by Otso Gold or otherwise provided.
- The requested interim injunctions are necessary to safeguard the operation and reorganization of the applicant company until a decision is taken to initiate reorganization proceedings and the injunctions are ordered urgently without consulting the creditors, the district court giving reasons for its decision.
In its application, the mining company states that the imposition of temporary bans is necessary to calm the situation. The company believes that creditors could take recovery action after receiving information about the reorganization application that the company's ability to operate would be significantly impaired or completely eliminated.
According to Otso Gold, the imposition of temporary bans will have a material impact on the entire Otso Gold Group, as the Group's financing is arranged primarily through the Canadian-registered parent company Otso Gold Corporation and is secured by the assets of several Group companies.
The Otso Gold Group has filed for reorganization applications simultaneously in Finland, Sweden and Canada, and has already received creditor protection in Sweden and Canada as well.