SEATTLE (Scrap Monster): Centerra Gold Inc. announced additional pre-emptive actions to protect the interests of the company and its stakeholders in response to the seizure of the Kumtor Gold Mine by the Government of Krygyzstan. The actions are aimed at preserving the value of Centerra’s wholly-owned subsidiaries that operate the mine and block any further efforts by the country’s government to strip the company of its assets or improperly dispose of the mine.
The subsidiaries, Kumtor Gold Company and Kumtor Operating Company initiated filing under Chapter 11 of the federal U.S. Bankruptcy Code, in the southern district of New York. The court-supervised process calls for a worldwide automatic stay of all claims against the subsidiaries. This orderly restructuring process will facilitate potential negotiations with the Kyrgyz Government, the company said. Furthermore, the filing is unlikely to have any additional financial or operational impact on Centerra Gold or the other areas of its business.
Scott Perry, President and Chief Executive Officer, Centerra Gold said that the company remains willing and available to hold a constructive dialogue with the Kyrgyz authorities. It will continue to pursue arbitration proceedings to enforce the longstanding agreements with the Kyrgyz Republic, he added.