Great Panther Mining (TSX: GPR) shareholders are in for a bit more pain this morning, with the firm revealing that it has been halted for trade on the Toronto Stock Exchange and subject to delisting, with the New York Stock Exchange meanwhile indicating that the firm will be subject to proceedings to delist its equity.
The delisting proceedings both north and south of the border follows the firm yesterday indicating that it would be filing for creditor protection as a result of its inability to pay its debts. The firm expects to default on “several material debtor agreements,” which lead to a filing under the Bankruptcy and Insolvency Act of Canada.
Following the announcement yesterday, the TSX halted the trading of the equity, with a delisting review required to remain on the exchange. That review is slated to occur September 16. South of the border, the firm has received noticed from the NYSE that proceedings for delisting have begun, with Great Panther having just seven days to appeal the decision.
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Great Panther is reportedly examining its options on the matter currently.
Outside of Canada, the firm meanwhile has also undertaken steps to reorganize in Brazil, where it operates under a subsidiary known as Mina Tucano Ltda. The subsidiary has filed for what is referred to as a judicial reorganization, which enables the company to attempt to restructure operations when undergoing financial distress. The method enables the subsidiary to remain in possession of its assets while operating the company as a going concern.
The filing effectively enables protection from collection and enforcement actions.
Great Panther Mining last traded at $1.09 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
