True North’s Greenland Subsidiary Files for Bankruptcy

True North owns 76 percent of the outstanding shares

True North Gems Greenland (TNGG), the subsidiary of True North Gems, has filed for bankruptcy.

“True North management have worked relentlessly over the last year with various financing groups in an attempt to secure the necessary funding,” according to a statement from the company. “The company has also been in negotiation with the other major creditors and interested parties of TNGG to enable TNGG to continue operations. These initiatives have proved unsuccessful, and TNGG was unable to re-capitalize in sufficient time to meet its September 2016 expenses. Therefore, the board of TNGG instructed TNGG management to initiate proceedings for voluntary bankruptcy.”

True North owns 76 percent of the outstanding shares and is TNGG’s largest creditor. The LNS Group, with 17 percent of the shares, is TNGG’s second largest creditor, and Greenland Venture, with 7 percent of the shares, is the third largest creditor.

TNGG’s main asset is the Aappaluttoq Ruby and Pink Sapphire deposit and mine in southwest Greenland. The Greenlandic Court has appointed trustees to manage the mine license and assets.