Dutch Gold Makes Progress in Balance Sheet Improvement Subsidiary, Dutch Mining LLC, Files Chapter 7 Proceeding
June 12 2014 - 8:28AM
Access Wire
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.
Forward-Looking Statements
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