Great Basin Gold Ltd. (fka GBGLF)

[goldenpolarbear]

Choosing between competing DIP lenders

Where more than one lender puts forward a DIP financing proposal, the court will have the task of determining which proposal should be accepted and on what terms the financing should be provided. When faced with such a situation, the Court in Great Basin Gold Ltd. (Re), 2012 BCSC 1773, held that the factors in section 11.2(4) of the CCAA should be applied. In the analysis, special emphasis was placed on which proposal would most likely enhance the prospects of a viable compromise or arrangement, whether any creditor would be materially prejudiced as a result of the security or charge, and the opinion of the monitor. In this case, one proposing party alleged that the other party’s proposal would cause it to be prejudiced. The court reasoned that while it is required to consider prejudice to other creditors, the prejudice must be weighed against the benefits of obtaining the financing.

http://businesslawblog.ahbl.ca/2014/08/20/dip-financing-basics-and-recent-case-law/

Water Segsworth Ex Great Basin Gold Director
"...Nevada miner's collapse leads to fraud action ..."
http://www.pressreader.com/canada/stockwatch-daily/20160831/281479275846850

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