Great Panther Mining ( NYSE: GPL ) -58% pre-market on Tuesday after saying it will seek creditor protection under Canada's Bankruptcy and Insolvency Act.
Great Panther ( GPL ) said it is likely to default on several debtor agreements "due to liquidity constraints stemming from the operational challenges previously disclosed, inflationary pressures significantly impacting costs, unforeseen but necessary capital expenditures, and contractor mobilization delays because of equipment availability issues."
The company said the filing of the notice of intention will allow it to explore available option while continuing to operate the business, but a failure to achieve its restructuring goals through an approved proposal would result in bankruptcy.
Great Panther Mining ( GPL ) recently reported a Q2 GAAP loss of $0.26/share on revenues of $30M .
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Great Panther Mining to seek creditor protection under Canada's bankruptcy act