Centerra Gold says Kumtor Gold Company and Kumtor Operating Company seek bankruptcy

AKIPRESS.COM - Centerra Gold Inc. announced on May 31 that Kumtor Gold Company and Kumtor Operating Company started bankruptcy proceedings in a U.S. court following introduction of external manager in Kumtor gold mine.
"KGC and KOC commenced a filing in the Southern District of New York under Chapter 11 of the federal U.S. Bankruptcy Code.
The court-supervised process provides, among other things, for a worldwide automatic stay of all claims against KGC and KOC. Centerra hopes that this internationally recognized, orderly restructuring process will facilitate potential negotiations with the Kyrgyz Government.
The Chapter 11 proceeding will not impact any other areas of the Company's business, including the Mount Milligan Mine in Canada, the Öksüt Mine in Turkey and the molybdenum business in North America.
The Company also announced that it is conducting a strategic review related to its ownership of KGC and KOC that will consider alternatives available to enhance value to Centerra's stakeholders in light of recent events involving the Kumtor Mine," the statement said.