Trucking firm seeks money from Yukon Zinc
A Whitehorse trucking company has filed a lawsuit against the Yukon Zinc Corp., though the owner of the Wolverine Mine is currently under creditor protection.
A Whitehorse trucking company has filed a lawsuit against the Yukon Zinc Corp., though the owner of the Wolverine Mine is currently under creditor protection.
Documents filed in Yukon Supreme Court on Tuesday show that P.S. Sidhu Trucking Ltd. is seeking an order that Yukon Zinc pay Sidhu back for about $865,000 in services it provided from October 2014 to January of this year.
Sidhu’s paperwork states the company made an agreement with Yukon Zinc in July 2014 to transport mineral concentrates from the Wolverine Mine, between Watson Lake and Ross River, to the port in Stewart, B.C.
“Despite demand” from Sidhu, Yukon Zinc has not paid for all of the services provided, the documents say.
In March, Yukon Zinc was granted protection in B.C. Supreme Court from the companies it owes money to. That has since been extended to June 12, while Yukon Zinc comes up with a plan to restructure or sell the mine.
Meanwhile, Yukon Zinc’s proceedings in Yukon territorial court have been adjourned until June 23, after the company’s protection ends.
It’s charged with two breaches of its Quartz Mining Licence for missing security payments.
The company owes a total of $647 million, of which $595 million is owed to its Chinese parent company headquartered in Vancouver, according to B.C. court documents.
Fifty-two Yukon companies are owed a total of $4.3 million.
The mine ceased operations Jan. 21, citing a depressed commodity market.
Comments (5)
Up 1 Down 0
Clayton Thomas on May 13, 2015 at 7:43 am
The government wants us to believe that mining is the answer. I d like to believe that mining is the answer. I've always been leery of doing business with mining companies, but now I'm straight afraid. These companies clean up plan is always bankruptcy and our attitude when they take our small business people down with them is " that's the way it goes" The government should step up and support small business if they expect any support in the future. Sidhu Trucking is a premier example of who we are as Yukoners.
Up 13 Down 1
Just Say'in on May 11, 2015 at 11:24 am
I wonder what would happen if Sidhu Trucking didn't pay all the bills they incurred from this run including employees until he was paid. Wouldn't that be an interesting event!
Up 16 Down 5
ArthurKing on May 8, 2015 at 3:49 pm
Get to the back of the line Sidhu Trucking. Not a snowball's chance in Hell, I am afraid. Trucking companies are not in any way preferential creditors. That's a cast iron certainty - in this case its zinc galvanised as well.
Up 21 Down 8
YTer on May 8, 2015 at 3:24 pm
Sidhu should just send the bill to Stewart Muir or maybe Samson over at the CoM.
Up 27 Down 2
Steve E on May 7, 2015 at 10:45 pm
I'm betting the Chinese government ends up having the last laugh with this boondoggle.