Pegasus Can’t Meet Debts In Australia

Pegasus Gold Inc. announced Thursday its wholly owned subsidiary, Pegasus Gold Australia Pty Ltd., has filed for voluntary administration in Australia.

“The American equivalent would be creditor protection or Chapter 11,” said John Pearson, vice president of investor and public relations for Pegasus Gold Inc.

The administrators will be from Ferrier Hodgson of Brisbane, a firm specializing in insolvencies.

Pegasus suspended operations at its Mt. Todd gold mine near Katherine, Australia, on Nov. 15 and took a $353.3 million write-down for the third quarter. The company has about $130 million left outstanding on a revolving line of credit, most of which was used to build the Mt. Todd facility.

Pearson said Pegasus Gold Australia is a completely separate company from Pegasus Gold Inc., adding there are no immediate plans to file for debt protection in the U.S., where the company operates gold mines in Nevada and Montana.

“We’re still in negotiations with our lending group,” Pearson said. “Nothing has changed there.”Pegasus stock today was unchanged, closing at 63 cents.