Centerra subsidiaries in Kumtor file for Chapter 11 bankruptcy protection in the United States

TORONTO – Centerra Gold Inc. says its wholly owned subsidiaries that own and operate the Kumtor mine have filed for Chapter 11 bankruptcy protection in the United States

TORONTO – Centerra Gold Inc. says its wholly owned subsidiaries that own and operate the Kumtor mine filed for Chapter 11 bankruptcy protection in the United States in an attempt to protect its interests after the government of the Kyrgyz Republic seized the mine in the Central Asian country.

The Toronto-based miner said Kumtor Gold Co. and Kumtor Operating Co. have started filing in the Southern District of New York.

The court-supervised process provides for a worldwide stay of all claims against the companies.

The Kyrgyz Republic last month issued a statement that it took control of the Kumtor mine because of what it called “Centerra’s abdication of its basic duty of care”.

The Canadian miner said the seizure was unjustified and launched binding arbitration against the government.

Centerra also said it is conducting a strategic review related to its KGC and KOC property in light of recent events involving the Kumtor mine.

This report by The Canadian Press was first published on June 1, 2021.

Companies in this story: (TSX: CG)

The Canadian Press

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