THUNDER BAY -- Receivership could be the way to get a potential mining development back on track its lawyer says.
Bending Lake Iron Group was put into a court-ordered receivership, granted on consent, Thursday afternoon at the Thunder Bay Courthouse. Working with the receiver over the next 30 to 45 days, before another court date, company lawyer Robert MacRae said Bending Lake is hopeful that it can successfully restructure in order to get the development going.
"The lender has been an excellent lender," he said. "They have no interest I'm told and I wouldn't think they do, in dealing with the company by any way of bankruptcy."
Bending Lake is sitting on more than 335-million tons of iron ore near Atikokan. But according to numbered company 2403177 Ontario Inc., the company's only secured creditor, it hasn't made a payment on its almost $2.3 million loan since 2012.
With interest that adds up to more than $3.1 million.
According to court documents there were several potential investors in the company, which now has only three board members, but none have given letters of interest and no final offers were made.
"As the value of iron ore is currently decreasing, which will negatively impact the value of the Debtor and its assets, a sale (and potential liquidation) through a receivership process appears to be the most beneficial outcome," the application states.
