On January 3rd, 2012 Timminco Ltd. (Toronto, Canada) announced that the company and subsidiary Bécancour Silicon Inc. (Canada) have obtained creditor protection through the Ontario courts under the Companies Creditors Arrangement Act (CCAA).

As a result of the ruling, the court has provided CCAA protection for an initial period ending on February 2nd, 2012. Timminco states that the action is in the best interests of stakeholders of both companies, following a deterioration in its liquidity position.

Timminco produces silicon metal for the chemical (silicones), aluminum and electronics/solar industries, through its majority owned production partnership with Dow Corning, known as Québec Silicon. Timminco also produces solar grade silicon for the solar photovoltaic industry, through Timminco Solar, a division of its wholly owned subsidiary Bécancour Silicon.

Timminco to continue operations during CCAA proceeding

Timminco further states that it intends to continue operations uninterrupted during the CCAA proceeding, and that it intends to meet its obligations to its employees and suppliers of goods and services provided after the filing date.

The company will also will remain in possession and control of its current and future assets, undertaking and properties, as well as proceeds from its activities.

The court has appointed FTI Consulting Canada Inc. (Toronto, Canada) as monitor. The Toronto Stock Exchange halted trading of Timminco shares on January 3rd, 2011.

Québec Silicon not included in creditor protection

Timminco blames the decline in its liquidity on "various factors", including reduced cash flow from silicon metal operations, solar market developments, restricted availability of funding under existing credit arrangements, and the difficulty in securing new funding.

Québec Silicon Limited Partnership, a production partnership between Bécancour Silicon and Dow Corning (Midland, Michigan, U.S.) has not applied for creditor protection.

2012-01-05| Courtesy: Timminco Ltd. | solarserver.com © Heindl Server GmbH

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