Things went from bad to worse this week for a troubled Denison Mines (TSE).
After obtaining a short-term reprieve from its creditors, the company was notified that the provincial Ministry of Environment and Energy and the Atomic Energy Control Board will initiate a lawsuit.
The two bodies asked the courts to order Denison to pay the estimated $100 million needed to clean up the Denison uranium mine near Elliot Lake, Ont., before the company repays its creditors.
The list of creditors is quite long. The Toronto Dominion Bank and Bank of America are owed $77 million. This debt was initially due March 31, but was subsequently renegotiated for repayment on April 19, 1994. In addition, subordinate debt holders are owed $18 million while preferred shareholders are owed about $200 million.
Denison is planning to meet with all the interested groups with the hope of working out a deal.
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