Midway Gold filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Liquidation and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for twelve (12) classes of claims and equity interests under Article III of the Plan. Of those classes, Class 11 (Other General Unsecured Claims) and Class 12 (Equity Interests) are deemed to reject the Plan and are not entitled to vote, and Class 1 (Priority Non-Tax Claims), Class 3 (Subordinate Agent Secured Claim), Class 4 (Mechanic’s Lien Claims against MDW Pan), and Class 5 (Other Secured Claims against MDW Pan) are deemed to accept the Plan and are not entitled to vote.”
The Disclosure Statement continues, “In general, the assets available for distribution under the Plan are comprised of (i) Cash on hand as of the Effective Date, (ii) the Remaining Assets, (iii) the Retained Causes of Action, (iv) all proceeds of the foregoing, and (v) all other assets transferred to the Midway Liquidating Trust constituting Liquidating Trust Assets, as described in greater detail in the Plan. The Remaining Assets are comprised of all assets that were not previously sold, disposed of, transferred or abandoned prior to the Effective Date, including, without limitation, (i) all of the Debtors’ right, title and interest in and to the Tonopah Project, (ii) certain raw land located in Ely, Nevada generally described as 1455 Ave.”
In addition, “On the Effective Date or as soon as is reasonably practicable thereafter, the Liquidating Trustee shall remit to holders of Allowed Administrative Claims, Allowed Priority Tax Claims and Allowed Priority Non-Tax Claims an amount in Cash equal to the Allowed amount of such Claims, or such lesser amounts as agreed to by such holders….The Plan also provides that the Midway Liquidating Trust shall make payment(s) to the holders of other Allowed Claims as and when such Claims become due and payable by Final Order of the Bankruptcy Court authorizing and approving the payment of such Claims in accordance with Article II of the Plan. As in the Plan, the Committee has negotiated for the funding of the MGUS GUC Reserve, which will provide Cash recoveries for the holders of Allowed General Unsecured Claims against MGUS, and the Non-MGUS GUC Reserve, which will provide Cash recoveries to be shared Pro Rata and on a paripassu basis among holders of Allowed General Unsecured Claims against each of MDW Pan, Midway Gold, MDW Gold Rock, and Midway Gold Realty, in each case as specifically provided for in the Plan.”
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