- 11 - 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’sPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011