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True North Gems Greenland Files for Bankruptcy
Sep 8, 2016 10:50 AM
By Rapaport News
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RAPAPORT... True North Gems’ Greenland subsidiary True
North Gems Greenland A/S (TNGG) has initiated voluntary bankruptcy
proceedings after it failed to secure the necessary funding from financers and
creditors.
TNGG’s main asset is the
Aappaluttoq ruby and pink sapphire mine in southwest Greenland.
True North’s management has “worked
relentlessly over the last year with various financing groups in an attempt to
secure the necessary funding,” the company said.
“The company has also been in negotiation
with the other major creditors and interested parties of TNGG to enable TNGG to
continue operations. These initiatives have proved unsuccessful and TNGG was
unable to re-capitalize in sufficient time to meet its September 2016 expenses,”
it added.
Greenland’s court appointed trustees who
will handle matters in relation to the mine and the associated license and assets
on behalf of TNGG.
True North Gems has a 76 percent stake in the
subsidiary, with NS Denmark APS holding 17 percent and Greenland Venture A/S
owning the remaining 7 percent.
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Tags:
Aappaluttoq, bankruptcy, Rapaport News, ruby, sapphire, true north gems, True North Gems Greenland
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