The Mission Group Regulatory News (TMG)

7 Jan 2005 17:16

Thistle Mining Inc.07 January 2005 Thistle Mining Inc. Obtains Order under Companies' Creditors Arrangement Act Toronto, 7 January 2005. Thistle Mining Inc. (TSX: THT and AIM: TMG) Thistle Mining Inc. ("Thistle") today announced that it has obtained an order,with the support of its senior creditor, Meridian Capital Limited ("Meridian"),to formally commence Thistle's restructuring under the Companies' CreditorsArrangement Act. As previously announced on December 21, 2004, in accordance with a restructuringand lock-up agreement signed on December 20, 2004 among Thistle, Meridian andMeridian's affiliate, Thistle Holdings Limited, the proposed restructuring willresult upon implementation in the existing equity of Thistle being cancelled andin Meridian holding approximately 70% of the then outstanding Thistle shares,holders of secured and certain unsecured convertible loan notes of Thistleholding approximately 25% of the then outstanding Thistle shares and affectedunsecured creditors and existing shareholders of Thistle holding approximately5% of the then outstanding Thistle shares. Upon implementation of therestructuring, Thistle will be indebted to Meridian in the principal amounts ofapproximately US$20 million and Cdn$3.93 million (exclusive of anydebtor-in-possession financing which remains outstanding). Holders of a significant principal amount of Thistle's secured convertible loannotes are in support of the restructuring. Thistle also announced that Meridian has agreed to provide debtor-in-possessionfinancing of up to a principal amount of Cdn$15 million so that Thistle and itssubsidiaries have sufficient financing to carry on their businesses during therestructuring process. PricewaterhouseCoopers Inc. has been appointed by the Ontario Court to act asthe monitor in connection with the restructuring. For further information, contact Harvey McKenzie, Chief Financial Officer,+1-416-594-3293. This information is provided by RNS The company news service from the London Stock Exchange