Printer Friendly

YUBA WESTGOLD FILES PETITION TO REORGANIZE UNDER BANKRUPTCY

 YUBA WESTGOLD FILES PETITION TO REORGANIZE UNDER BANKRUPTCY
 Marysville, Calif., Sept. 4 /PRNewswire/ -- Yuba WestGold, Inc. (Yuba) announced today that it voluntarily filed a petition to reorganize under Chapter 11 of the United States Bankruptcy Code. The filing of the petition reflects Yuba's deteriorating financial condition, its inability to obtain satisfactory compromises of creditors' claims and its lack of sufficient resources to meet its upcoming obligations as they come due.
 Yuba announced on Aug. 12, 1992, that its principal shareholder, Western Gold Exploration and Mining Company, Limited Partnership (WestGold), had terminated their line of credit agreement, which previously provided for Yuba's net cash requirements. Yuba also reported, on Aug. 21, 1992, a second quarter net loss of $17.3 million, including a charge of $15.5 million representing the excess of net book value over the estimated realizable value for Yuba's assets. This charge reflected the likelihood that the proceeds derived from a sale of Yuba's assets are expected to be less than their book value.
 Yuba vice president, William E. Brooks, said: "We believe it will be possible to sell the gold dredging operations of Yuba Placer Gold Company as a going concern as part of Yuba's bankruptcy proceeding, however, the proceeds derived from such a sale are likely to be insufficient to pay Yuba's debts in full or provide any return to the holders of its equity securities, including its common stock." Mr. Brooks commented further: "We have no plans at this time to file for bankruptcy protection on behalf of Yuba Placer Gold Company, which is continuing to pay its obligations as they come due other than its debt to WestGold."
 Yuba is engaged in the dredging of gold and other precious metals located along the Yuba River in Yuba County, Calif.
 -0- 9/4/92
 /CONTACT: Camille Ketelsen of Terra Industries Inc., 712-279-8778/ CO: Yuba WestGold, Inc. ST: California IN: MNG SU: BCY


TS -- NY028 -- 6903 09/04/92 11:52 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 4, 1992
Words:326
Previous Article:FLEET BANK ANNOUNCES $352,400 IN 1992 NAURISON SCHOLARSHIP AWARDS
Next Article:FLORIDA KEYS ELECTRIC COOPERATIVE ASSOCIATION RECEIVING POWER FROM FPL
Topics:


Related Articles
YUBA WESTGOLD REPORTS NET LOSS FOR THIRD QUARTER AND FIRST NINE MONTHS OF 1991
YUBA WESTGOLD SAYS PRINCIPAL SHAREHOLDER INTENDS TO OFFER ITS INTEREST IN THE COMPANY FOR SALE
YUBA WESTGOLD SAYS PRINCIPAL SHAREHOLDER INTENDS TO OFFER ITS INTEREST IN THE COMPANY FOR SALE
YUBA WESTGOLD REPORTS NET LOSS FOR 1991
YUBA WESTGOLD SAYS PRINCIPAL SHAREHOLDER HAS TERMINATED FURTHER FUNDING OF YUBA'S CASH REQUIREMENTS
YUBA WESTGOLD REPORTS RESTRUCTURING CHARGE AND NET LOSS FOR SECOND QUARTER
YUBA WESTGOLD SIGNS LETTER OF INTENT TO SELL YUBA PLACER GOLD COMPANY
STATESWEST FILES PLAN OF REORGANIZATION
AMDURA CORPORATION ANNOUNCES ISSUANCE OF COURT ORDER
RAB INDUSTRIES, INC. FILES FOR CHAPTER 11 REORGANIZATION

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters