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Failure To Complete the Initial Stage Plant
Solv-Ex had continued to make modifications to its initial
stage plant in Alberta during April 1997, but, because it could
not obtain anticipated financing, Solv-Ex began to mothball the
plant in late May 1997.
Toward the end of June 1997, Mr. Rendall, on behalf of Solv-
Ex, continued his attempts to obtain financing for the completion
of the initial stage plant, this time by offering to sell a part
of the company to a large oil company. Those attempts proved
unsuccessful when the prospective buyer of a 1/2-interest in
Solv-Ex backed out of the proposed deal upon learning from Mr.
Rendall that Solv-Ex would be filing for bankruptcy protection
under Canadian law as a means of avoiding the filing of a lien by
a large unpaid creditor.
Solv-Ex’s Bankruptcy Reorganizations
On July 14, 1997, Solv-Ex filed a petition for bankruptcy
protection in Canada under the Companies’ Creditors Arrangement
Act, the Canadian equivalent of a filing under chapter 11 of the
United States Bankruptcy Code (the Canadian bankruptcy). On
August 1, 1997, Solv-Ex filed a petition under the said chapter
11 in the U.S. Bankruptcy Court for the District of New Mexico
(the U.S. bankruptcy). The two bankruptcy cases (the joint
bankruptcies) were jointly administered by each country’s
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Last modified: May 25, 2011