By Adriano Marchese


Great Panther Mining Ltd. said it intends to seek creditor protection amid expectations that it won't be able to pay its debts.

The South America-focused gold-and-silver producer said Tuesday that it has determined to file a notice of intention to make a proposal under the bankruptcy and insolvency act while it seeks to restructure its affairs.

Great Panther said it is likely to default on several debts because of liquidity constraints.

The company has been hit by operational challenges, inflationary pressures that drove up costs, as well as delays with its contractors made worse by a number of unforeseen expenditures, it said.

The filing of the notice of intention allows Great Panther to explore different strategic and financial alternatives while continuing to operate and maintain control of its business.

If it fails to restructure, the company would be deemed to have made an assignment into bankruptcy, it said.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

09-06-22 0747ET