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January 17, 2008 |
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LAFAYETTE MINING: To File Petition for Rehab, Not Bankruptcy Lafayette Mining Ltd. said that its Rapu Rapu Group is filing a petition for rehabilitation, not bankruptcy as reported by the media, The Philippine News Agency reports. According to the report, legal counsel of Lafayette Philippines, Bayani Agabin, explains that rehabilitation means operations will continue and people would remain employed. Bankruptcy, Mr. Agabin points out, "would mean mining operations stop, people would be laid off and the remaining assets sold." Mr. Agabin clarifies this matter as news broke out that the firm has declared bankruptcy, says the report. Mr. Agabin further clarifies that the Rapu Rapu project mine is not closing down and "is definitely not bankrupt, and simply needs time to get back on its feet by being allowed to suspend payment of its present obligations," relates PNA. Carlos G. Dominguez, chairman and president of Lafayette Phils., said the local unit will file a petition for rehabilitation so it can continue normal operations. The petition, states the report, is expected to result in a court order instructing the group's present creditors and suppliers to continue their services and transactions with the local companies for as long as they are paid on cash basis. PNA adds that under rehab protection, payment for existing debts will be suspended until the court has approved a rehabilitation plan that will fairly settle all outstanding debts and ensure the continued operations of the company. About Lafayette Mining Lafayette Mining Philippines, Incorporated, is a subsidiary of Australian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/ -- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. The TCR-AP's "Large Companies with Insolvent Balance Sheets" column on December 14, 2007, reflected Lafayette Mining Limited as having US$190.86 million equity deficit, on total assets of US$105.24 million. |
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