Centerra’s Kumtor subsidiaries file for Chapter 11 bankruptcy protection in U.S.
Jun 3, 2021 by MarketDepth | 4 views
TORONTO — Centerra Gold Inc. says its wholly owned subsidiaries that own and operate the Kumtor Mine have filed for Chapter 11 bankruptcy protection in the U.S. in a move to protect its interests after the government of the Kyrgyz Republic seized the mine in the central Asian country.The Toronto-based miner says the Kumtor Gold Co. and Kumtor Operating Co. started the filing in the Southern District of New York.
The court-supervised process provides for a worldwide stay of all claims against the companies.
The Kyrgyz Republic issued a statement last month that it took control of the Kumtor mine because of what it said was the “abdication of its fundamental duties of care” by Centerra.
The Canadian miner has said the seizure was unjustified and initiated binding arbitration against the government.
Centerra also says it is conducting a strategic review related to its ownership of KGC and KOC in light of the recent events involving the Kumtor mine.
This report by The Canadian Press was first published June 1, 2021.
Companies in this story: (TSX:CG)
The Canadian Press