ATLANTA, GA / ACCESSWIRE / June 12, 14 / Dutch Gold Resources, Inc. (DGRI.OTC) (the “Company”) (http://dutchgoldinc.com) today announced its’ subsidiary, Dutch Mining LLC has filed for liquidation in the United States Bankruptcy Court in the Northern District of Georgia. There should no impact on the operations of Dutch Gold Resources, Inc., except that its’ balance sheet should be much improved at the conclusion of the liquidation of the defunct subsidiary, to the extent of the debt extinguishment that is being sought.
The likely outcome will be that the Company could reduce its corporate indebtedness by approximately $3,500,000, positively impacting both the balance sheet and profit & loss statement by Q3 2014.
In addition to the Dutch Mining LLC liquidation, the Company has seen some success in settling its remaining corporate debt. It has settled approximately $150,000 of indebtedness at an average of twenty cents on the dollar. The Company believes that there are additional opportunities to resolve the indebtedness that remains after the completion of the Chapter 7 proceeding of its subsidiary.
"These actions are intended to improve the Dutch Gold balance sheet, which may have the impact of lowering the Company’s cost of capital in the future", said Daniel Hollis, CEO. "This is a positive development for the Company. We have identified financial re-engineering as a major goal for Q2 2014 and we are pleased to have initiated this action, executing on our plan to revitalize Dutch Gold Resources, Inc.", he added.
An 8K is being filed with the Securities and Exchange Commission regarding this action.
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by Dutch Gold Resources, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.
For further information, please see www.DutchGoldInc.com or please contact Daniel Hollis, CEO of Dutch Gold Resources, Inc. at 404-981-7424.
SOURCE: Dutch Gold Resources, Inc
Leave a comment...