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WestMountain Gold Plan Filed

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WestMountain Gold filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “The Plan will be primarily funded from the New Capital investment in the Debtor based on debtor in possession financing provided during the case and new equity invested at the time the Plan is confirmed. It is a requirement of the Plan that the combination of new debtor in possession financing and new equity investments will total at least $3 million and range up to $4 million. The Debtor is expecting a combination of financing and new equity of approximately $3.5 million….The capital structure of WestMountain will be significantly changed as a result of Plan confirmation. The BOCO secured claim which now approximates $8.7 million on a pre-petition basis will be limited to the amount of $5 million on a secured basis, in Class 2. The balance of the claim in the amount of approximately $3.7 million will be treated as unsecured debt in Class 3. In order to assist in facilitating the Plan, the BOCO secured claim will accrue interest at the rate of 200 basis points over the yield on a 10 year U.S. Treasury Bond. The interest and principal will not be due and payable until the 5 year anniversary of the Plan effective date. The term of the secure claim may be extended for 2 years upon payment of one half of the interest due at the end of 5 years. The ownership structure of WestMountain will be changed to reduce the common stock ownership of the current stockholders from 100% to 1.9% of the outstanding Common Stock following the Effective date of the Plan. Preferred shareholders will be provided with .7% of the New Common Stock. Unsecured creditors will be entitled to select an Option under the Plan where they can exchange their claims for .15 share of New Common Stock up to a maximum allocation of 11.3% of the New Common stock for the electing creditors in the unsecured Class 3. The balance of the New Common stock that will be issued, approximately 86.1% to those creditors who elect to provide the New Capital to the Debtor in the amount of between $3 and $4 million.”

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