Next Week in Bankruptcy

Colorado gold miner Midway Gold Corp. could get the court approval it needs to sell most of its properties out of bankruptcy to GRP Minerals LLC at a hearing scheduled for Monday.

Judge Michael E. Romero is expected to review GRP Minerals’ purchase offer—the only one of its value to come in before the company’s bankruptcy auction—for its Pan mine in Nevada and several other properties.

The Pan gold mine is the company’s only gold-producing property, according to documents filed in U.S. Bankruptcy Court in Denver. Midway Gold officials have been disappointed by the amount and quality of gold that has been pulled out of the earth since digging began in March 2015. Gold prices, meanwhile, have declined in recent years.

Midway Gold officials looked for buyers after putting the Englewood, Colo., mining company into bankruptcy protection on June 22.

Under the deal, GRP Minerals has promised to pay $5.25 million in cash and to take responsibility for $16.1 million worth of expected reclamation liability. Other properties included in the proposed sale include its Gold Rock project, which is located near the Pan mine, and its Golden Eagle project in Washington state.

On Wednesday, lawyers who put Sundevil Holdings LLC into bankruptcy protection could get permission from a Delaware judge to sell the company’s two gas-fired power plants in Arizona.

Andrew Beal’s Beal Bank USA won the bidding for the Gila Bend, Ariz., company’s operations, but the deal’s fine print still needs approval from Judge Kevin Carey. Under the deal, the Las Vegas bank, which has been paying for the cost of the bankruptcy case, promised to forgive a portion of the $237 million it is owed.

Sundevil Holdings, owned by private-equity firm Wayzata Investment Partners, filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., in early February. The company blamed its recent struggles on depressed electricity prices in its market as well as faltering natural gas and energy prices. It generated about $63.9 million in revenue from its sales of energy in 2015.

Sundevil Holdings owns two of the four natural-gas fired plants in the Gila River Power Station in Arizona, which sells energy to consumers in Arizona, New Mexico and southern Nevada. It bought them following the financial downturn with hopes of an increased need for gas-fired power, but the demand never met expectations.

On Monday, a bankruptcy judge is scheduled to look over a debt repayment plan from paper manufacturer Verso Corp. that offers little for some creditors.

Officials who put Verso into chapter 11 protection in January are proposing to secure between $600 million and $650 million in exit financing to pay for the company’s emergence from bankruptcy.

Verso officials blamed the company’s financial problems on the rise of digital media that has slashed demand for the magazines, catalogs and other publications that rely on Verso-made paper. They had reached a secured a deal with key creditors that would trade some $2.4 billion in debt for equity in the restructured company.

Court papers show that the holders of Verso first-lien debt, a group owed $1.18 billion, can expect to recover 30% of their claims via the 50% stake in the restructured company they would get under the restructuring plan. A 47% stake in the restructured company would go to lenders to NewPage, the former rival that Verso acquired last year. That includes the lenders that provided bankruptcy financing to NewPage, whose $184.48 million in claims are slated to be repaid in full, as well as NewPage’s term loan lenders, whose recovery on $576.39 million in claims will come out to about 24 cents on the dollar.

But several groups of creditors would see recoveries of pennies on the dollar. The holders of Verso’s senior bonds, owed $581.36 million, are set to get a 2.85% stake in the restructured company, which amounts to three cents on the dollar. Subordinated debt holders owed $112.84 million would get a 0.15% equity stake, for a recovery of 0.9%.

The company says its restructuring plan won’t only slash its debt load but also will allow it to complete the integration of NewPage into Verso and will preserve the jobs of its employees, who numbered more than 5,000 as of the end of last year.

-Lillian Rizzo, Patrick Fitzgerald and Jacqueline Palank contributed to this article.

Write to Katy Stech at [email protected]. Follow her on Twitter at @KatyStech