Orbite Technologies Inc. said June 11 that the Superior Court of Quebec granted an extension to a stay of proceedings until July 20, amid the company's restructuring efforts.
The court also approved a C$650,000 debtor-in-possession financing from holders of Orbite's 7% convertible secured debentures due Sept. 28, which the company expects to keep reduced operations running until the week of July 22. Closing is anticipated on or about June 13.
Orbite noted that the second debtor-in-possession financing has the same lender and similar terms to a C$6.8 million financing approved in early August 2017, which was expected to enable reduced operations to continue until the week of Feb. 22.
The company filed for creditor protection in April 2017 after a rocky ramp-up of its Cap-Chat high-purity alumina plant in Quebec, which continues to face issues. Orbite aims to extract metals, in particular aluminum, from atypical sources, including tailings, fly ash and aluminum-rich clay deposits.
Orbite continues to work with Outotec to fix issues with calcination equipment, according to the latest update, with causes and solutions identified and discussions underway.
