On July 31, 2019, Yukon Zinc Corporation (the “Company”) filed a Notice of Intention to Make a Proposal (the “NOI”) pursuant to section 50.4(1) of the Bankruptcy and Insolvency Act (Canada) BIA and Alvarez & Marsal Canada Inc. was named as the Proposal Trustee. Notice to the creditors can be found here.

The Government of Yukon has filed a Petition with the Supreme Court of Yukon seeking the appointment of a receiver.  On August 7, 2019, Madam Justice S.M. Duncan issued reasons for judgment and granted a limited lifting of the stay to allow the Government of Yukon to proceed with its application to appoint a receiver.  The court hearing for this application will be scheduled in due course.   For further details, a copy of the reasons for judgment can be found here.

On August 22, 2019, the Supreme Court of British Columbia granted an order that provided for, among other things, an extension of the initial stay period under the NOI proceedings to make a proposal from August 30, 2019 to October 7, 2019. A copy of the court order is located here.

The Proposal Trustee is of the view that a material adverse change occurred in the Company’s projected cash-flow and financial circumstances pursuant to section 50.4(7)(b) of the BIA. Further details regarding the material adverse change can found in the Proposal Trustee’s report located here.

On September 6, 2019, the Government of Yukon is seeking an order to appoint a receiver for the Company and a court hearing is scheduled for September 13, 2019 in Whitehorse, Yukon. A copy of the notice of hearing is located here. 

On October 11, 2019, the Supreme Court of British Columbia granted an order that provided for the substitution of Alvarez & Marsal Canada Inc. as Trustee in Bankruptcy by PricewaterhouseCoopers Inc. and that Alvarez & Marsal Canada Inc. would be discharged as Trustee of the Company. A copy of the order can be found here.

If you have any questions, please contact PricewaterhouseCoopers Inc. Contact information can be found here.