Nevada Copper Inc. and its affiliates have filed their disclosure statement and joint Chapter 11 plan of liquidation with the U.S. Bankruptcy Court for the District of Nevada (Case No. 24-50566-hlb), outlining their strategy to wind down operations and distribute assets to creditors.
The mining company, which filed for bankruptcy protection in June 2024, is proposing a plan that follows the October 2024 sale of substantially all of its assets to Southwest Critical Materials LLC for approximately $125 million. The sale proceeds were insufficient to satisfy all secured claims against the company.
To enable distributions to unsecured creditors, the company has negotiated a plan support agreement with major creditors including KfW IPEX-Bank GmbH, Triple Flag International Ltd., Pala Investments Limited, and Mercuria entities. The agreement establishes a general unsecured cash pool for distributions to eligible creditors.
The plan, filed by Allen Overy Shearman Sterling US LLP and McDonald Carano LLP as debtors' counsel, proposes to appoint a plan administrator to oversee the wind-down process and make distributions to creditors. The plan maintains the company's existing D&O insurance policies and includes releases for various parties involved in the bankruptcy process.
A combined hearing for final approval of the disclosure statement and confirmation of the plan will be scheduled by the bankruptcy court. The company has requested that the Canadian court, where parallel proceedings are pending, recognize the plan once confirmed.
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Document length: 119 pages