Maudore Minerals (V.MAO, StockForum), already feeling the flame of a “invalid” bankruptcy proceeding launched against its subsidiary, Aurbec Mines, dropped into a full-blown financial fire on September 30th after defaulting on interest payments owed to FBC Holdings SARL.
Cyrus served Maudore notice at close of markets on October 2nd and Greg Struble, President and CEO of Maudore, rushed to supply reason for his company's non-payment of the loan interest and describe the gravity of Cyrus' warning, “On September 30th, in order to preserve cash, we chose to defer the payment of the Sept 30th interest due to FBC while negotiations continue. After the close of business yesterday, Cyrus put Maudore on notice that, while they are still prepared to proceed with a consensual restructuring which would see the major unsecured creditors join them in supporting Maudore's business plan, they would move to enforce their security if agreements to implement a standstill and consensual restructuring are not signed by our four major unsecured creditors by 9:00 AM EDT on October 7th.”
Cyrus was quick to clarify their stand, “(We) remain supportive of the board and management of Maudore & Aurbec's efforts to maximize cash flow and reopen the Sleeping Giant mine". In the face of Cyrus' tough love, Maudore execs race to put out an already raging fire, “the Company will do everything it can to ensure that all stakeholders are treated fairly in accordance with their legal entitlements, that no creditor receives preferential treatment, and affected creditors receive full payment to the extent possible.”