via Fasken - DIP Financing For Distressed Companies

The one thing that must be kept in mind throughout this trading halt is very specifically there was no credit event to speak of, therefore no material default. CCAA was not declared, though the articles of the bankruptcy and insolvency act are being followed.

You might believe that CCAA is proceeding, but CCAA is not mentioned and scrupulously avoided.

Very likely an asset transfer will occur as part of the recapitalization of the company, and the chosen legal framework is the Debtor-in-possession Financing. This does not imply a loan per se, but implies that a vehicle that through which the asset transfer can occur, and also that the first ranking charge over all the assets of the company is changed in priority.

The priority change is the reason why you might need to resort to DIP financing in a restructuring.

That would mean a purchasing deal where doré gold is provided to the 'lender' swapped for cash will be provided.

http://bit.ly/297DnHp

-F6