Orosur's Uruguay unit agrees payment plan with creditors

Orosur Mining announced on Tuesday that its wholly-owned Uruguayan subsidiary, Loryser, has reached a payment plan agreement with creditors in Uruguay.

The AIM-traded firm said Loryser had been working “diligently” to reach a “fair and balanced” solution in Uruguay, in the interests of all its stakeholders.

It explained that, in parallel with ongoing discussions with third parties, Loryser had negotiated and reached an agreement with “the majority” of its creditors.

“The Agreement contemplates that net proceeds from the sale of Loryser’s assets in Uruguay, together with the issuance of 10 million common shares of Orosur, shall fully satisfy all amounts owing to Loryser’s creditors as well as provide funds for Loryser to conduct this process and close operation responsibly,” the Orosur board explained in its statement.

“As contemplated by the agreement, Loryser would manage the process, to be completed within two years.

“The issuance of common shares of Orosur is subject to approval of the Toronto Stock Exchange.”

Loryser contacted more than 90% of its creditors by value, distributed the agreement and was successful in obtaining execution of the agreement by the majority of its creditors, Orosur said.

To date, about 68% of the creditors by value had executed the agreement.

Loryser said it could continue to receive executed agreements from additional creditors.

The support level was already above the required simple majority, being 50% of creditors by value, required to proceed, the board confirmed.

As such, on 17 December, Loryser submitted the agreement to the court, and the court cancelled the meeting of creditors.

“The agreement is now subject to consideration by the court and the intervenor, and normal procedures for approval - like public notice - which the company expects to conclude in the first half of 2019,” Orosur’s board said.

“Once approved by the court, the agreement will be legally binding for all the creditors and Loryser’s creditor protection status will cease together with Intervenor´s control over the company.”