Golden-based gold miner Atna Resources Ltd. filed for Chapter 11 bankruptcy protection Wednesday with the goal of streamlining its operations and restructuring its debts.
The company said it is in default of its existing loan and faces severe liquidity constraints, having just $200,000 in cash on hand as of this week. To fund its restructuring, it is seeking court permission to tap a $4 million financing package from its existing lenders.
The company’s restructuring strategy, which comes as gold prices have fallen substantially over the past several years, includes trying to sell core and noncore assets while tackling challenges at mines in California and Nevada.
Atna’s indirect parent, Atna Canada, has also sought protection from creditors in Canada.
Atna reported assets between $10 million and $50 million and debts between $50 million and $100 million in its Chapter 11 petition, filed in the U.S. Bankruptcy Court in Colorado.
