Quest Subsidiary Gwenco Files for Chapter 11
PATERSON, N.J. - Kentucky based Quest Minerals & Mining Corp. (OTCBB: QMMG; Frankfurt: QMN.F), has announced that, as an additional step to further its financial restructuring initiative, Gwenco, Inc., its wholly-owned subsidiary, has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Neither Quest nor any of its other subsidiaries were included in the filing.
Quest is continuing its efforts to rehabilitate the company’s Pond Creek Mine at Slater’s Branch, Kentucky and to recommence mining operations there. The reorganization is planned so that there will be no disruption of these efforts. The company intends to seek immediate court approval for debtor-in-possession financing from holders of its existing debt obligations in order to fund operating expenses.
Eugene Chiaramonte, Jr., President of Quest, stated, “Today we have taken an important step toward creating a stronger Quest. We have been conducting a financial restructuring over the last year in order to us to resume operations at the Pond Creek mine as Slater’s Branch as well as pursue other energy related opportunities. We have already successfully renegotiated a significant portion of our outstanding debt.
“However, it has become apparent to us that this filing was necessary to protect our assets from claims, debts, judgments, foreclosures, and forfeitures of those creditors and stakeholders with whom we were unable to successfully negotiate restructured agreements. A formal reorganization should allow us to complete the financial restructuring process while we continue our efforts to rehabilitate the Pond Creek mine and recommence mining operations. We believe that by taking this action, we can restructure our financial obligations, obtain new financial resources, and emerge from this proceeding as a stronger company"
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