Insolvent silicon metal producer, Timminco has successfully raised US$4.25 million to continue operating while it undertakes restructuring via the Ontario Superior Court.
The commitment for ‘debtor-in-possession (DIP) financing was raised from a company called QSI Partners Ltd, though searches on its identity have note yet proved successful. The deal means that Timminco can continue to purchase silicon metal from its joint venture operations with Dow Corning, Quebec Silicon and ship product as planned.
Timminco also said that it had granted QSI Partners ‘stalking horse bidder’ rights until January 31, 2012 which could but doesn’t automatically mean that QSI Partners would acquire Timminco assets.
“We are delighted to have achieved this significant milestone,” said Mr. Douglas A. Fastuca, Chief Executive officer of the Company. “This facility provides the necessary funds to allow us to operate throughout the anticipated duration of the CCAA restructuring process. We can now focus on moving toward a successful outcome to the restructuring, through an open and competitive process. In the meantime, we expect to continue to purchase silicon metal from our Quebec Silicon joint venture and ship product to our customers as planned.”
Financial filings indicate that Timminco had debts of approximately CAD$89 million.