Simply Put, Bad Decision The two main federal statutes that govern bankruptcy and insolvency in Canada are the Bankruptcy and Insolvency Act (BIA) and the Companies Creditors Arrangement Act (CCAA).
The Yukon Govt has petitioned the courts for receivership under BIA. PwC has been appointed the Receiver. The Co is virtually bankrupt, Management and the Board of Directors have resigned. The Receiver has been granted Debtor-in-possession funding by the Govt as a debt on the business. The Receiver will deal with the tailings dam remediation and paying creditors. The shares will be delisted and cancelled. The Receiver will end up selling the gold mine to another bidder.
Under the ambit of CCAA legislation, the Co, could have voluntarily petitioned the courts for restructuring and debt arrangements in order to buy time to work with the creditors, FNNND and the Govt. in lieu of bankruptcy. The shares would still be suspended until the Co exits from CCAA proceedings under a new company (Newco). Shareholders will likely get some shares from Newco.
In my view, BIA or CCAA should not have been invoked at all. VGCX's debts are very manageable with only $200 million owing to the banks with proven gold reserves. The management just have to conscientiously deal with the dam remediation, get loan forbearance from the banks, work with the suppliers, FNNND and the Yukon Govt. No calamity happened except for some dead fish,