North

Yukon Zinc creditors vote 'Yes' to restructuring plan

Yukon Zinc creditors voted Wednesday to accept a new restructuring plan following a townhall meeting held by the company earlier this week.

PricewaterhouseCoopers: 267 of 273 creditors voted in favour of plan

Jing You Lu, CEO of Yukon Zinc, attended Monday's meeting in which Yukon creditors were informed of the company's proposed restructuring plan. (Mike Rudyk/CBC)

Yukon Zinc creditors voted Wednesday to accept a new restructuring plan following a townhall meeting held by the company earlier this week. 

Of the 273 creditors who voted on the new deal, all but a few voted in favour of the restructuring plan.  

Under the current deal, creditors owed more than $5,000 stand to make up to 11.5 cents on the dollar while those owed less than $5,000 would be paid in full. 

A court date to sanction the agreement is set for later this month.

Yukon Zinc shut down its Wolverine Mine, near Watson Lake, in January and later entered creditor protection. It owes hundreds of millions of dollars to a long list of companies, including many in the Yukon. 

PricewaterhouseCoopers provided the following breakdown of Wednesday's vote: 

Total Claims Voted: 
273 creditors, representing $20,659,309 in claims. 

Summary of Claims Voted FOR: 
267 creditors (97.8% of total creditors voting), representing $14,321,533 (69.3% of total claims in value voting) in claims. 

Summary of Claims Voted AGAINST: 
6 creditors (2.2% of total creditor voting), representing $6,337,776 (30.7% of total claims in value voting) in claims.