Toronto Stock Exchange Suspended Trading of Lydian International Ordinary Shares

On 23 December 2019, Toronto Stock Exchange suspended trading of the Lydian International ordinary shares and is now reviewing the eligibility of the Company’s ordinary shares for listing on the TSX as a result of the Company being granted protection under the Companies’ Creditors Arrangement Act. The delisting hearing is expected to occur in early January 2020, as the press release disseminated by Lydian Armenia says.

 

Lydian has called upon to Canadian court for protection. In this regard, the company press release says, “The forbearance agreement expired on December 20, 2019 and was not prolonged. While under CCAA protection, creditors and others are stayed from enforcing any rights against the Company, Lydian Canada, Lydian UK and a number of their direct subsidiaries including Lydian Armenia.

 

The court protection also sought to enable the Company to reconsider its capital structure and financial position as the Company was in a volatile financial situation as a result of an unlawful blockade of more than 18 months. Lydian International is listed on the Toronto Stock Exchange (TSX) and obeys the rules of that exchange and the laws of the Ontario securities market.

 

Canada has a flexible restructuring (company recovery) regime that enables the company to achieve the best possible performance in a court-controlled restructuring. The Canadian court has granted an opportunity to protect Lydian in its entirety, including Lydian Armenia, and has appealed to several countries, including the UK, US and Armenia, to participate in this process."

 

Does this mean bankruptcy? Lydian comments:

 

“No, it doesn't mean. While the Company is under court protection, the Company may continue to operate normally, pay for work and services, with the aim of being restructured as a viable business unit at the end of this protection period. During this period, the Company will work on restructuring of business, loans and other liabilities, providing maximum opportunity for Lydian Armenia to continue operating.

 

Short technical hearings will take place on January 2, but content-based discussions will be heard in Canadian court on January 23rd, 2020.”

 

The Company assures that it will work in a number of areas following these processes, including the potential sale of the project, the refinancing of the project and/or the arbitration process against the Government of Armenia.

 

"It is likely that the option that will provide the best results for the Company's beneficiaries in the current situation will be selected," it said.

 

While under CCAA protection, the Company intends to continue discussions with its lenders and others, including the Government of Armenia, to seek to maximize the outcome for all stakeholders including the hundreds of employees, contractors and suppliers affected by the ongoing illegal blockades. The Company also intends to pursue: (a) an end to the illegal actions which have resulted in Lydian Armenia’s inability to access the Amulsar Project; (b) the ability to pursue financing and/or sale options for the Amulsar Project; and (c) finalizing financing discussions with respect to potential foreign investment arbitration proceedings against the Government of Armenia.