Yukon Zinc Corporation

Receivership

Page last updated: October 1, 2020

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.


Status Update as at October 1, 2020

Further to the Receiver’s status update of June 26, 2020, a series of appeals have been commenced with respect to the following Orders granted by the Honourable Madam Justice Duncan of the Supreme Court of Yukon which can be found here

  • Order elevating to the priorities of the Receiver’s Charge and Receiver’s Borrowings Charge and approving a sale and investment solicitation plan with respect to the Company;
  • Order dismissing the application of Welichem Research General Partnership (“Welichem”) to set aside the partial disclaimer issued by the Receiver with respect to certain equipment under the Master Lease Agreement between Welichem and the Company; and
  • Order regarding the nature of the Government of Yukon (“Yukon”)’s interest pursuant to section 14.06(7) of the Bankruptcy and Insolvency Act (Canada) in relation to the Company.

Accordingly, proceedings with respect to the above have been initiated by Welichem in the Yukon Court of Appeal, Proceeding No. 20-YU866, 20-YU867, and No. 20-YU868 and by Yukon in the Court of Appeal of Yukon, Proceeding No. 20-YU865. Copies of the facta and other pertinent materials filed by the parties to these appeals can be found here.

The above appeals are scheduled to be heard on by the Yukon Court of Appeal on November 16 and 17, 2020.

Status update as at June 26, 2020 

The Court, on June 26, 2020 released its Decisions in respect of the applications heard January 28 - 30, 2020. Copies of the Decisions can be found in the "Court Orders" tab above.

Status Update as at May 25, 2020

The Court, on May 25, 2020, released its Decisions in respect of the applications heard January 28 – 30, 2020. Copies of the Decisions can be found in the “Court Orders” tab above.

Status Update as at May 11, 2020

The Court granted an Order on May 11, 2020 approving the increase of the Receiver’s Borrowing Charge from $3 million to $7.5 million. A copy of the Order can be found in the “Court Orders” tab above. The Court’s decision regarding the remainder of the relief sought in the Receiver’s Notice of Application dated March 23, 2020 remains reserved.

Status Update as at April 16, 2020

The Receiver has issued its Supplemental Third Report to Court. A copy can be found in the “Receiver’s Reports” tab above.

Status Update as at March 30, 2020

A copy of the March 13, 2020 Case Management Conference Order and all other relevant application materials of the Receiver related to the April 29, 2020 hearing have now been uploaded.

Status Update as at March 25, 2020

In preparation for the Receiver’s application increase the Receiver’s Borrowing Charge, a Case Management Conference was held on March 13, 2020 before Madam Justice Duncan. The issues of setting down a hearing date and service deadlines were settled.

The hearing is set for 10:00 am on April 29, 2020, at the Supreme Court of Yukon, Whitehorse Courthouse.

In support of the April 29 hearing, the Receiver issued its Third Report to Court on March 23, 2020. A copy of the Receiver’s Third Report can be found under the “Receiver’s Reports” tab above.

A copy of the March 13, 2020 Case Management Conference Order and all other application materials related to the April 29, 2020 hearing will be uploaded upon receipt from the Court.

Status Update as at January 30, 2020

The Court heard the matters noted below on January 28 – 30, 2020. The Court has reserved its decision. The Receiver will provide an update on its website once the Court releases its decision.

Status Update as at January 24, 2020

Pursuant to Section 4.7 (a) of RFP# YZC-2019-001, the Receiver has entered into a contract for the performance of environmental monitoring, surveillance and reporting at the Yukon Zinc Wolverine Mine Site.

Status Update as at January 22, 2020

The Case Management Conference took place on December 13, 2019. The Court has set aside January 28 – 30, 2020 to hear the following matters:

  • The Yukon Government’s application to determine the amount, security, and priority of any claim of the Yukon Government pursuant to section 14.06(7) of the Bankruptcy and Insolvency Act (Canada);
  • The Receiver’s application for approval of the sale and investment solicitation process (SISP) to solicit bids for the purchase of some or all of the assets of the Company or an investment in the Company, directions as to the items to be included in the SISP, and elevation of the priorities of the Receiver’s Charge and the Receiver’s Borrowing Charge;
  • Welichem General Research Partnership’s application for a declaration that the partial disclaimer issued by the Receiver is a nullity, that the continued use of the equipment listed in the partial disclaimer is an affirmation of the subject lease and orders that the Receiver pay to Welichem Research General Partnership all amounts owing under the subject lease and costs.

The Receiver has issued its Second Report to Court dated January 16, 2020. A copy of the Receiver’s Second Report can be found under the “Receiver’s Reports” tab above.

The Receiver has uploaded all application materials under the “Court Application Materials” tab above.

Status Update as at December 12, 2019

The Receiver has filed its Supplemental First Report to Court dated December 12, 2019. A copy of the Report can be found in the “Receiver’s Reports” tab above.

The court hearing set for December 13, 2019 referenced in the Receiver’s First Report to Court has been postponed and has been replaced by a Case Management Conference.

Status update as at November 4, 2019

The first meeting of creditors for the Bankruptcy of Yukon Zinc Corporation was held on Thursday October 31, PwC was affirmed as Trustee of the estate. A copy of the Trustee's preliminary report to creditors can be found under the "Bankruptcy Documents" tab. 

Status update as at October 18, 2019 

On July 31, 2019, Yukon Zinc Corporation (the “Company”) filed a Notice of Intention to Make a Proposal (the “NOI”) pursuant to section 50.4(1) of the Bankruptcy and Insolvency Act and Alvarez & Marsal Canada Inc. was named as the Proposal Trustee. On August 22, 2019, the Supreme Court of British Columbia granted an order that provided for, among other things, an extension of the initial stay period under the NOI proceedings to make a proposal or apply for further extension from August 30, 2019 to October 7, 2019. Yukon Zinc Corporation did not file a proposal nor did they apply to extend the initial stay period under the NOI proceedings. Therefore, the Company was deemed bankrupt on October 8, 2019 and Alvarez and Marsal was appointed Trustee in Bankruptcy. PwC was substituted in place of Alvarez and Marsal as Trustee on October 11, 2019 by Order of the Supreme Court of British Columbia. Copies of the Court Order, Certificate of Assignment and Creditor Communications can be found under the “Bankruptcy Documents” tab.

Status Update as at September 13, 2019

On September 13, 2019, the Supreme Court of Yukon granted an Order appointing PricewaterhouseCoopers Inc. ("PwC") as Receiver (the "Receiver") of the assets, undertakings, and property of Yukon Zinc Corporation ("YZC"), including YZC's Wolverine Mine. The purpose of the receivership is to stabilize and run a sale process for YZC's assets, including the Wolverine Mine. 

The Receiver is in the process of developing a sale and investment process and will be making an application to the Court shortly for approval of that process. 

The Receiver will update this website regularly. All relevant documents relating to Court Orders, application materials, creditor communication, and the sale process will be uploaded to the Receiver's website.

Contact us

Spencer Oppal

Senior Associate, PwC Canada

Tel: 604 495 8966 ext. 4195

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