MONTREAL – On June 30, 2005, CAMPBELL RESOURCES announced that the Superior Court of Quebec (Commercial Division) has granted it an initial order under the Companies’ Creditors Arrangement Act (CCAA). Campbell intends to use the provisions of the CCAA to prepare and present a plant of arrangement to its stakeholders.
The company blames its troubles on difficulties during the startup of the Copper Rand mine. Setbacks were encountered in unstable ground during development of a critical ventilation raise, during shaft repairs resulting in reduced hoisting capacity, and problems with vital mine equipment. The net result was reduced levels of production and insufficient cash flow.
Campbell intends to continue operations at both its Copper Rand and Joe Mann mines during the restructuring period. The $5-million convertible note financing announced by the company in May will not be completed.
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