Timminco and its subsidiary Bécancour Silicon, an associate of AMG Advanced Metallurgical Group, is seeking protection from their creditors under the Companies’ Creditors Arrangement Act (CCAA). Timminco BSI applied and received an initial order from the Ontario Superior Court of Justice under the CCAA on January 3.
Timminco BSI noted that it plans to continue its operations uninterrupted during the CCAA proceeding and intends to meet its obligations to employees and suppliers of goods and services provided after the filing date. The company advised that it had to seek CCAA protection because of reduced cash flows from its silicon metal operations combined with deterioration in the worldwide solar market, which impacted the timing of its restart of commercial scale solar silicon production. Due to a volatile market dynamic and AMG’s overall investment priorities, AMG will not be committing further resources.
As of September 30, 2011, AMG owned 41.9% of Timminco’s common stock with the shares listed as an asset on AMG’s balance sheet with a value of CAN$10.3 million. The company also held a convertible note with a book value of CAN$2.8 million and a CAN$5 million account receivable due from Timminco.
In mid-December, the company announced it was seeking funds to continue operations.
Timminco said that Québec Silicon Limited Partnership, which is in a production partnership for silicon metal via Bécancour Silicon and Dow Corning, has not applied for creditor protection under CCAA and is not part of the current proceedings.