On August 26, 2015, Santa Fe Gold Corporation and three affiliates filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The cases are docketed as case no. 15-11761, and have been assigned to The Honorable Mary F. Walrath.
Jakes Jordaan, the debtors' President and CEO filed a declaration in support of the petition and other first-day motions. According to Mr. Jordaan, the debtors are a group of mining and mineral exploration companies headquartered in Lordsburg, New Mexico. The debtors have already ceased operations.
Mr. Jordaan notes in his declaration that for the past several years, in the face of chronic underfunding, liquidity constraints, operational and management challenges and declining precious metal prices, the debtors have been trying to attract a stragic partner. While some efforts were made, none of the potential transactions occurred.
Currently, the debtors lack funding to continue any additional technical work, and have no way of generating income, according to Mr. Jordaan. Accordingly, the debtors have sought other alternatives. In connection with the bankruptcy filing, the debtors have received DIP financing from Waterton Global Value, L.P., the debtor's senior secured creditor and Waterton has agreed to act as a stalking horse for a proposed auction and sale of the debtors' businesses in the chapter 11 case.