Claude files proposal for bankruptcy

Saskatchewan-based junior Claude Resources (TSE) has filed for bankruptcy to restructure debts owed to several major creditors.

The largest creditor, Western Canadian Shopping Centres, which is owed $41.1 million, will receive $10 million in return for the debt owed. The $10-million settlement will be made through a series of instalments, beginning with $5.5 million by Sept. 1, 1993, and ending Jan. 1, 1995. Claude has also agreed to pay its Seabee mine suppliers in full and its unsecured creditors about 25 cents on the dollar to a maximum aggregate amount of $390,000.

Also, Claude’s preferred shares will be converted into common shares at 2.5 common for each preferred. This new rate, which is higher than the 1.6 conversion rate in the preferred share provisions, takes into account the cumulative dividends on the preferred shares which have not been declared. Following approval of the bankruptcy proposal by Claude’s creditors with the court, the company plans to complete its audit for 1991 and 1992 and hopes to have its shares relisted for trading.

Claude has also negotiated to sell its interests in the Twining oil property in Alberta.