Lydian Announces Proposed Plan of Arrangement With Secured Creditors and Cease Trade Order

 Lydian International Limited (“Lydian” or the “Company”) announced today that the Company, together with Lydian Canada Ventures Corporation (“Lydian Canada”) and Lydian U.K. Corporation Limited (“Lydian UK” and together, the “Applicants”), have scheduled a motion (the “Motion”) before the Ontario Superior Court of Justice (Commercial List) (the “Court”) to be heard on June 18, 2020 in the Applicants’ Companies’ Creditors Arrangement Act (“CCAA”) proceedings, pursuant to which the Applicants will seek an order of the Court accepting the filing of a plan of arrangement (the “Plan”), authorizing and directing the Applicants to call, hold and conduct a meeting of the Senior Lenders (as defined below) to vote on the Plan (the “Meeting”), approving the procedures to be followed at the Meeting, including voting procedures, and setting a date for the hearing of the Applicants’ motion for an order of the Court approving the Plan. If approved, the Plan will result in Lydian Canada and Lydian UK exiting the CCAA proceedings through a corporate restructuring and a mechanism for the winding up of the Company.

The Plan will implement a restructuring which will result in the Company’s existing senior secured lenders, Orion CO IV (ED) Limited, Resource Capital Fund VI L.P. and Osisko Bermuda Limited (the “Senior Lenders”), owning and controlling a restructured Lydian Canada and its direct and indirect subsidiaries including Lydian UK and Lydian Armenia CJSC. The Plan provides for a full and final release of all claims against the Company and its directors and officers, which includes all claims of the Company’s Senior Lenders. Claims against Lydian Canada, Lydian U.K. and the other subsidiaries of the Company, including Lydian Armenia CJSC, will not be released and will remain outstanding after implementation of the Plan. As a result, only the Senior Lenders will be entitled to vote on the Plan, while other parties, including unsecured creditors whose claims are unaffected, and equityholders, will not be entitled to vote nor receive any distributions under the Plan. Following implementation of the Plan, the Company will have no assets and the Company will commence proceedings to be wound up under Jersey law, which will include the cancellation and extinguishing of all ordinary shares in the capital of the Company. Access to the Plan and all corresponding materials relating to the Motion will be available on the court-appointed Monitor’s website, provided below.

In addition, as a result of the Company’s previous announcement that it has not complied, nor is it planning on complying in the future, with its required continuous disclosure documents, the Ontario Securities Commission has informed the Company that a cease trade order has been issued against the Company.

All inquiries regarding the CCAA proceedings, including the proposed Plan, should be directed to the court-appointed Monitor, Alvarez & Marsal Canada Inc. (email: lydian@alvarezandmarsal.com or telephone: +1 416-847-5158). Information about the Company’s CCAA proceedings, including all court orders made and the Monitor’s reports, are available on the Monitor’s website, at: http://www.alvarezandmarsal.com/Lydian. A copy of the Plan will be available on the Monitor’s website shortly.

For further information regarding the Company, please contact: moreinfo@Lydianinternational.co.uk.